Company registration number 09530778 (England and Wales)
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
COMPANY INFORMATION
Directors
J Crabtree
S Grundahl
Mercia Fund Management (Nominees) Limited
M Rene
(Appointed 1 February 2022)
P H Hul
(Appointed 8 March 2023)
Company number
09530778
Registered office
Unit N Europa House
Sheffield Airport Business Park
Sheffield
S9 1XU
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

The principal activity of the business is s a manufacturer and seller of machines which specialise in the precision post processing of 3D printed parts, ensuring they meet the highest standards of quality and finish. Through tried and tested technology, AMT refine, enhance, and elevate 3D printed parts.

 

Additive Manufacturing Technologies Ltd is the parent of a Group of 3 Companies, namely:

 

Additive Manufacturing Technologies Ltd is the Parent Company of the Group and is a UK based company.

 

AMT Ltd is a UK based company and is both a seller and service provider direct to customers (B2C). The UK company also performs some research and development within its facility.

 

AMT INC is based in Texas, USA, and is both a seller and service provider direct to customers (B2C).

 

AMT KFT is an entity based in Hungary and undertakes both manufacturing and research and development of machines. AMT Ltd will purchase machines directly from the Hungarian entity and sell direct to customers through Europe and Asia (the North American market is covered by AMT Inc).

 

During the financial year the Group earned revenue of £10,015,153 (2021: £3,811,714) which is an increase of 163% compared with the previous year. Loss before taxation was £ (5,501,188) (2021: £ (4,670,610)) an increase of 18%. 2022 was a year of rapid growth and order intake. Despite the value of the loss increasing the margin went from (123%) to (55) % and expectation into future years is that this margin will continue to improve, and the Group will be profitable from 2024.

 

As at the 31 December 2022 the Group had net assets of £1,108,110 (2021: £6,763,841).

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Principal risks and uncertainties

The Groups activities expose it to several risks as set out below:

 

Health and Safety Risks and Hazards

The Groups health and safety policies and procedures are aimed at reducing risk to employees and others. However, the manufacturing and R&D sites see employees and others in proximity to large equipment and highly regulated materials which increase risk to health and safety. Failure to implement and follow appropriate safety procedures could result in personal injury, illness, and other damage to the Company’s property.

 

The Group has relevant procedures, policies, and insurances in place to protect itself, it’s employees and others against these risks.

 

Economic Environment

Demand for the Groups products can be impacted by economic factors and events. The 3D Printing environment has been negatively impacted by the growing risk of recession and other economic downturns. This has resulted in fewer industrial sales across the entire market.

However, the Group has mitigated this risk by entering new market segments and will continue to perform market research and development of products to allow them to expand their customer base and spread the risk of such factors.

 

Geopolitical Risks

The Group is exposed to various geopolitical risks as it operates in an increasingly interconnected global economy. Escalating conflicts and unrest could impact particular regions which could have repercussions in other parts of the world. As such there is a limited risk to the business that it could become adversely affected by such uncertainties.

 

The Group have established methods to assess and monitor regional conditions in which it operates and has designed and enforced appropriate policies and controls to ensure products are not sold into areas which are below risk tolerance levels.

 

Availability and Retention of Professional and Qualified Staff

There can be strong competition in the market for qualified technical and management personnel within manufacturing sector. The company’s success depends on its continued ability to attract and retain qualified and skilled staff. If the Group is unable to retain key personnel, the roles and responsibilities need to be filled which can cause the Group to devote time and attention to business needs. The inability to do this could limit the Groups ability to successfully compete in the market and therefore it’s ability to sustain and increase revenues in future results.

 

Information Security

To operate properly, ensure adequate product and service delivery to its customers and meet business objectives, the Group relies on information technologies. Within these technologies the Group processes proprietary information relating to its business, customer information and information in relation to third parties. This may include sensitive, confidential, and personal information of customers and employees.

 

The Group faces threats that are constantly evolving, increasingly sophisticated and difficult to detect and successfully defend against. This includes cyber threats from criminal hackers, ransomware, denial of service and other forms of malicious attacks, phishing, and other social engineering techniques, physical or electronic security breaches, computer viruses, unauthorised access, employee misconduct, human or technological errors or similar events or disruptions. Any of these threats may lead to system interruptions, delays, and loss of critical data which in turn will expose the Group to potential liability, loss of customer confidence, loss of customers, damage to brand a reputation, financial reporting capabilities and other financial loss.

 

The Groups employees are provided with systems and infrastructure which facilitate secure online access to the Groups network and relevant information, both confidential and sensitive.

 

The Group relies on generally accepted measures and technical and organisation controls to protects its information and information technology systems. There is however no assurance that the efforts of the Group with prevent all threats into the systems.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Financial instruments

The Groups financial instruments expose it to credit, foreign current, interest rate and liquidity risk:

 

Credit risk

 

Credit risk is the risk that a counterparty will not meet its obligations under a customer contract, leading to financial loss.

 

Financial instruments which potentially subject the Company to significant credit risk consist principally of cash, trade receivables and other receivables.

 

The Group's cash is held within financial institutions. The Group therefore considers the associated risk to be minimal.

 

The Groups credit risk is principally attributable to its trade receivables. The amounts disclosed in the statement of financial position are net of an allowance for expected credit losses, estimated by management, and based in part of the age of the specific receivable balance and the e=current and expected collection trends. The Group does not require collateral or other security from customers for trade receivables. The Group believes that the credit risk of the trade receivables is limited.

 

Foreign Currency Risk

 

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

 

The Groups business is conducted across several currencies. As a result, it is subject to risks associated with the foreign exchange movements affecting transaction costs. The Group’s broad geographical spread in terms of customer base helps to spread the risk and reduce the impact of profitability of swings in exchange rates as it allowed for netting of exposures.

 

Interest rate risk

 

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument with fluctuate because of the changes in market interest rates. The Groups exposure to the risk of changes in market interest rates is deemed relatively low as the loan has a fixed interest rate and there are no other loans.

 

Liquidity risk

 

Liquidity risk is the risk that the Group will encounter difficulties in meeting its obligations as they fall due.

 

The Group Finance Director ensures that the company maintains funding flexibility by assessing future cash flow expectations to ensure that the Group will have adequate resources to meet its liabilities when they fall due.

 

The Group is party to an unsecured credit facility of £3,000,000 with an external bank. The arrangement is subject to covenants and is repayable on demand in the event of a breach.

Research and Development activities

To deliver the highest standard of products and to maintain and grow its market position the Group maintains research and development activities in areas they already serve in the market and opportunities for expansion into new market segments. There are designated employees who work solely in research and development to ensure we remain competitive within the 3D printing industry.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Analysis based on Key Performance Indicators

The Directors utilise various key performance indicators to measure the performance of the business against competitors and previous years:

 

 

                                2022        2021

Gross Profit Margin %                        38%        35%

Operating Loss Margin %                        (55) %        (123) %

Earnings before interest, tax, depreciation, and amortisation margin    (4,685,620)    (4,273,059)

Future Developments

2022 saw a year of significant growth in customer base and order intake which is reflected in the top line. Throughout 2023 and beyond the Group has stabilised as the Group begins to mature as well as the 3D printing market slowing down at the industrial level. Despite this the Group foresees a positive future as they continue to enter new market segments and strengthen their brand and reputation within the market. The company was proactive in 2023 in reacting to the downturn of the 3D printing market and restructured the Group to lower it’s cost base but maintain its operations without disruption. This has proved successful, and the Company is forecasting to be profitable in 2024.

 

The Group launched a new product into a new market segment in November 2023. This has seen extremely positive order intake to date and is expected to continue.

On behalf of the board

J Crabtree
Director
31 January 2024
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Crabtree
S Grundahl
D Manley
(Appointed 17 April 2023 and resigned 25 May 2023)
A Bloxam
(Resigned 25 October 2023)
L Kopeikina
(Resigned 8 March 2023)
M Dev
(Resigned 24 March 2023)
Mercia Fund Management (Nominees) Limited
M Rene
(Appointed 1 February 2022)
P H Hul
(Appointed 8 March 2023)
Statement of directors' responsibilities

The directors are responsible 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic Report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments, research & development and future developments.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
J Crabtree
Director
31 January 2024
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADDITIVE MANUFACTURING TECHNOLOGIES LTD
- 7 -
Opinion

We have audited the financial statements of Additive Manufacturing Technologies Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 directors' 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADDITIVE MANUFACTURING TECHNOLOGIES LTD
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADDITIVE MANUFACTURING TECHNOLOGIES LTD
- 9 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

Comparative information in the financial statements is derived from prior period financial statements which were not audited.

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.

Paul Winwood (Senior Statutory Auditor)
For and on behalf of BHP LLP
31 January 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations
2022
operations
operations
2021
Notes
£
£
£
£
£
£
Turnover
3
10,015,153
-
10,015,153
3,811,714
-
3,811,714
Cost of sales
(6,177,168)
-
(6,177,168)
(2,459,778)
-
(2,459,778)
Gross profit
3,837,985
-
3,837,985
1,351,936
-
1,351,936
Administrative expenses
(8,465,255)
-
(8,465,255)
(5,757,061)
(60,246)
(5,817,307)
Other operating income
42,140
-
42,140
206,753
-
206,753
Exceptional items
4
(708,216)
-
(708,216)
(676,396)
370,267
(306,129)
Operating loss
5
(5,293,346)
-
(5,293,346)
(4,874,768)
310,021
(4,564,747)
Interest receivable and similar income
9
33
-
33
-
-
-
Interest payable and similar expenses
10
(207,875)
-
(207,875)
(105,863)
-
(105,863)
Loss before taxation
(5,501,188)
-
(5,501,188)
(4,980,631)
310,021
(4,670,610)
Tax on loss
11
(122,088)
-
(122,088)
36,079
-
36,079
Loss for the financial year
(5,623,276)
-
(5,623,276)
(4,944,552)
310,021
(4,634,531)
Loss for the financial year is all attributable to the owners of the parent company.
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
£
£
Loss for the year
(5,623,276)
(4,634,531)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(32,455)
98,597
Total comprehensive income for the year
(5,655,731)
(4,535,934)
Total comprehensive income for the year is all attributable to the owners of the parent company.
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,200,890
1,932,655
Current assets
Stocks
16
2,095,015
1,321,343
Debtors
17
4,245,305
1,634,436
Cash at bank and in hand
1,101,098
3,299,428
7,441,418
6,255,207
Creditors: amounts falling due within one year
18
(4,819,614)
(1,096,367)
Net current assets
2,621,804
5,158,840
Total assets less current liabilities
4,822,694
7,091,495
Creditors: amounts falling due after more than one year
19
(3,444,584)
(327,654)
Provisions for liabilities
Provisions
22
270,000
-
0
(270,000)
-
Net assets
1,108,110
6,763,841
Capital and reserves
Called up share capital
25
2,704
2,704
Share premium account
16,887,897
16,887,897
Profit and loss reserves
(15,782,491)
(10,126,760)
Total equity
1,108,110
6,763,841

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
31 January 2024
J Crabtree
Director
Company registration number 09530778 (England and Wales)
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 13 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
13
568,530
705,810
Investments
14
239,129
246,042
807,659
951,852
Current assets
Stocks
16
238,911
-
Debtors
17
8,560,787
3,787,685
Cash at bank and in hand
810,041
2,902,200
9,609,739
6,689,885
Creditors: amounts falling due within one year
18
(2,565,956)
(697,025)
Net current assets
7,043,783
5,992,860
Total assets less current liabilities
7,851,442
6,944,712
Creditors: amounts falling due after more than one year
19
(3,273,553)
(327,654)
Provisions for liabilities
Provisions
22
270,000
-
0
(270,000)
-
Net assets
4,307,889
6,617,058
Capital and reserves
Called up share capital
25
2,704
2,704
Share premium account
16,887,897
16,887,897
Profit and loss reserves
(12,582,712)
(10,273,543)
Total equity
4,307,889
6,617,058

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,309,170 (2021 - £5,131,927 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
31 January 2024
J Crabtree
Director
Company registration number 09530778 (England and Wales)
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
1,775
6,202,073
(5,590,826)
613,022
Year ended 31 December 2021:
Loss for the year
-
-
(4,634,531)
(4,634,531)
Other comprehensive income:
Currency translation differences
-
-
98,597
98,597
Total comprehensive income
-
-
(4,535,934)
(4,535,934)
Issue of share capital
25
929
8,812,639
-
8,813,568
Other movements
-
1,873,185
-
1,873,185
Balance at 31 December 2021
2,704
16,887,897
(10,126,760)
6,763,841
Year ended 31 December 2022:
Loss for the year
-
-
(5,623,276)
(5,623,276)
Other comprehensive income:
Currency translation differences
-
-
(32,455)
(32,455)
Total comprehensive income
-
-
(5,655,731)
(5,655,731)
Balance at 31 December 2022
2,704
16,887,897
(15,782,491)
1,108,110
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
1,775
6,202,073
(5,141,617)
1,062,231
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(5,131,926)
(5,131,926)
Issue of share capital
25
929
8,812,639
-
8,813,568
Other movements
-
1,873,185
-
1,873,185
Balance at 31 December 2021
2,704
16,887,897
(10,273,543)
6,617,058
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
(2,309,169)
(2,309,169)
Balance at 31 December 2022
2,704
16,887,897
(12,582,712)
4,307,889
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
29
(3,912,340)
(5,649,244)
Interest paid
(207,875)
(12,000)
Income taxes refunded
44,964
35,799
Net cash outflow from operating activities
(4,075,251)
(5,625,445)
Investing activities
Purchase of tangible fixed assets
(877,143)
(1,000,389)
Interest received
33
-
0
Net cash used in investing activities
(877,110)
(1,000,389)
Financing activities
Proceeds from issue of shares
-
8,812,890
Proceeds from new bank loans
3,000,000
-
Repayment of bank loans
(130,211)
(173,064)
Payment of finance leases obligations
(84,484)
-
Net cash generated from financing activities
2,785,305
8,639,826
Net (decrease)/increase in cash and cash equivalents
(2,167,056)
2,013,992
Cash and cash equivalents at beginning of year
3,299,428
1,186,839
Effect of foreign exchange rates
(31,274)
98,597
Cash and cash equivalents at end of year
1,101,098
3,299,428
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
1
Accounting policies
Company information

Additive Manufacturing Technologies Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit N Europa House, Sheffield Airport Business Park, Sheffield, S9 1XU.

 

The group consists of Additive Manufacturing Technologies Ltd and all of its subsidiaries.

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.

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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Additive Manufacturing Technologies Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The financial statements are prepared on a going concern basis. Accounting standards require that directors satisfy themselves that it is reasonable for them to conclude whether it is appropriate to prepare the financial statements on a going concern basis.

The Directors have assessed the viability of the Group and reviewed detailed cash flow forecasts for a period of at least twelve months following the date of approval of the Annual Report. In assessing the going concern of the Group the Directors reviewed the Group's base case plans for the period to 31 January 2025. Further the Directors have assessed the Group's debt and cash positions, including the Group's day-to-day working capital commitments, and forecast cash flow and debt facility repayments. The financial position, liquidity and cash flow commitments of the Group are presented in these financial statements. The Directors have also reviewed their objectives and policies for managing risk and objectives going forward.

The Directors are confident in the Group's outlook with a forecast to have profitable EBITDA in 2024 which is achieved by entering new market segments to mitigate the risks faced from the slowing down of the 3D printing industrial market. Thus the Directors continue to adopt the going concern basis of accounting in preparing the accounts.

1.5
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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
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.

1.7
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.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -

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:

Plant and equipment
1 - 5 years straight line
Fixtures and fittings
5 - 16 years straight line
Computers
3 - 7 years straight line

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.10
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.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
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.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 22 -
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 23 -
1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

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.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provisions for liabilities

These financial statements include a provision for legal liabilities of £270,000. There is inherent uncertainty in the case of legal provisions as they are dependent on a range of outcomes and possibilities. Management calculate provisions using all relevant information available to them at the time. See note 22 for further details of the provision included in these financial statements.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Sales of machines and other associated products
9,743,473
3,654,588
Sales of maintenance services
257,367
121,262
Other sales
14,313
35,864
10,015,153
3,811,714
2022
2021
£
£
Turnover analysed by geographical market
UK
647,618
372,946
Rest of Europe
3,080,583
1,150,906
North America
5,155,124
1,799,867
Asia
272,207
208,749
Rest of World
859,621
279,246
10,015,153
3,811,714
2022
2021
£
£
Other revenue
Interest income
33
-
Grants received
42,140
206,753
4
Exceptional item
2022
2021
£
£
Expenditure
Reorganisation costs
262,852
(55,220)
Fundraising deal fees
138,588
503,184
Exceptional bad debt write off
136,331
-
Legal case
170,446
-
Loans waived
-
(132,475)
Exceptional grants received
-
(9,360)
708,216
306,129
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
5
Operating loss
2022
2021
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange (gains)/losses
(46,934)
268,045
Research and development costs
238,669
519,128
Government grants
(42,140)
(206,753)
Depreciation of owned tangible fixed assets
461,303
267,421
Depreciation of tangible fixed assets held under finance leases
146,423
24,267
Operating lease charges
396,370
415,123
6
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
32,500
-
For other services
Taxation compliance services
2,500
-
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Management
5
7
3
3
Production and research staff
59
51
5
2
Sales and administrative staff
23
25
11
10
Total
87
83
19
15

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
3,523,355
2,780,059
1,146,760
834,802
Social security costs
290,956
81,106
75,183
69,093
Pension costs
9,045
9,136
9,045
9,136
3,823,356
2,870,301
1,230,988
913,031
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
8
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
486,016
502,571
Company pension contributions to defined contribution schemes
2,642
4,566
488,658
507,137

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 0).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
122,659
152,000
Company pension contributions to defined contribution schemes
1,321
1,211
9
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
33
-
0
10
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
202,884
6,518
Interest on convertible loan notes
-
0
93,863
Interest on finance leases and hire purchase contracts
4,991
1,282
Other interest
-
4,200
Total finance costs
207,875
105,863
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(90,925)
Adjustments in respect of prior periods
13,737
-
0
Total UK current tax
13,737
(90,925)
Foreign current tax on profits for the current period
108,351
54,846
Total current tax
122,088
(36,079)
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Taxation
(Continued)
- 27 -

The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Loss before taxation
(5,501,188)
(4,670,610)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(1,045,226)
(887,416)
Tax effect of expenses that are not deductible in determining taxable profit
60,404
146,724
Change in unrecognised deferred tax assets
497,913
1,216,301
Adjustments in respect of prior years
13,737
(280)
Research and development tax credit
-
0
(55,657)
Other permanent differences
429,909
-
0
Fixed asset differences
(2,686)
(21,609)
Remeasurement of deferred tax for changes in tax rates
(119,498)
(488,988)
Foreign tax
287,535
54,846
Taxation charge/(credit)
122,088
(36,079)

As at the year end the company had unused tax losses of £10,162,462 (2021: £8,848,516).

12
Discontinued operations

In May 2021, Additive Manufacturing Technologies BV, a subsidiary incorporated in the Netherlands, ceased to trade and the results of this company have therefore been separated as discontinued operations.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2022
1,779,240
448,881
203,352
2,431,473
Additions
705,957
138,605
32,581
877,143
Exchange adjustments
22,573
(11,251)
(3,891)
7,431
At 31 December 2022
2,507,770
576,235
232,042
3,316,047
Depreciation and impairment
At 1 January 2022
399,428
35,079
64,311
498,818
Depreciation charged in the year
507,421
45,474
54,831
607,726
Exchange adjustments
10,337
(765)
(959)
8,613
At 31 December 2022
917,186
79,788
118,183
1,115,157
Carrying amount
At 31 December 2022
1,590,584
496,447
113,859
2,200,890
At 31 December 2021
1,379,812
413,802
139,041
1,932,655
Company
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2022
890,132
8,557
62,082
960,771
Additions
103,042
4,017
2,186
109,245
At 31 December 2022
993,174
12,574
64,268
1,070,016
Depreciation and impairment
At 1 January 2022
219,350
5,479
30,132
254,961
Depreciation charged in the year
232,767
1,922
11,836
246,525
At 31 December 2022
452,117
7,401
41,968
501,486
Carrying amount
At 31 December 2022
541,057
5,173
22,300
568,530
At 31 December 2021
670,782
3,078
31,950
705,810
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Tangible fixed assets
(Continued)
- 29 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2022
2021
2022
2021
£
£
£
£
Plant and equipment
269,603
379,060
-
0
-
0
14
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
239,129
246,042
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022
246,042
Foreign exchange movement
(6,913)
At 31 December 2022
239,129
Carrying amount
At 31 December 2022
239,129
At 31 December 2021
246,042
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Additive Manufacturing Technologies Inc
1200 BMC Drive, Suite 800 Cedar Park, Austin, Texas, 78613, USA
Ordinary shares
100.00
Additive Manufacturing Technologies Kft
Galagonya utca 5, Budapest,1036, Hungary
Ordinary shares
100.00
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 30 -
16
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Work in progress
109,083
-
109,083
-
Finished goods and goods for resale
1,985,932
1,321,343
129,828
-
0
2,095,015
1,321,343
238,911
-
17
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,275,270
187,783
779,704
136,512
Corporation tax recoverable
-
0
111,280
-
0
111,280
Amounts owed by group undertakings
-
-
6,845,496
2,929,981
Other debtors
837,860
759,853
569,089
329,504
Prepayments and accrued income
1,132,175
575,520
366,498
280,408
4,245,305
1,634,436
8,560,787
3,787,685
18
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
20
-
0
27,711
-
0
27,711
Obligations under finance leases
21
151,817
122,812
122,811
122,812
Payments received on account
131,583
-
0
-
0
-
0
Trade creditors
1,948,328
578,603
830,762
269,016
Corporation tax payable
55,771
-
0
-
0
-
0
Other taxation and social security
141,234
218,262
28,476
162,696
Deferred income
23
1,770,814
-
0
1,260,682
-
0
Other creditors
168,480
123,008
5,361
123,008
Accruals and deferred income
451,587
25,971
317,864
(8,218)
4,819,614
1,096,367
2,565,956
697,025
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 31 -
19
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
20
3,000,000
102,500
3,000,000
102,500
Obligations under finance leases
21
111,665
225,154
102,344
225,154
Deferred income
23
332,919
-
0
171,209
-
0
3,444,584
327,654
3,273,553
327,654
20
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
3,000,000
130,211
3,000,000
130,211
Payable within one year
-
0
27,711
-
0
27,711
Payable after one year
3,000,000
102,500
3,000,000
102,500

The long-term loans are secured by fixed charges over the assets of Additive Manufacturing Technologies Limited and are covered by a guarantee from Additive Manufacturing Technologies Inc. and Additive Manufacturing Technologies Kft.

Long term loans attract an interest charge of 10% + SONIA (Sterling Overnight Index Average) and is repayable in quarterly instalments due to commence in August 2024 with full repayment due by August 2025.

21
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
132,133
122,812
122,812
122,812
In two to five years
131,349
225,154
102,343
225,154
263,482
347,966
225,155
347,966

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. No restrictions are placed on the use of the assets and the average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
22
Provisions for liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
Provision for legal expenses
270,000
-
270,000
-
Movements on provisions:
Provision for legal expenses
Group
£
Additional provisions in the year
270,000
Provision for legal expenses
Company
£
Additional provisions in the year
270,000

The legal costs provision relates to outstanding legal claims which may become payable in the future but are still subject to legal proceedings. These are calculated based upon the Directors' best estimate of the amount which may fall due. The recognised provision reflects the Directors' best estimate of the most likely outcome but the total amount payable may be different depending on final settlements. Based on the latest advice a best estimate is that should the courts rule against the Group any resulting obligations will be settled within 24-36 months of the year end.

23
Deferred income
Group
Company
2022
2021
2022
2021
£
£
£
£
Other deferred income
2,103,733
-
1,431,891
-

Deferred income is included in the financial statements as follows:

Current liabilities
1,770,814
-
0
1,260,682
-
0
Non-current liabilities
332,919
-
0
171,209
-
0
2,103,733
-
1,431,891
-
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 33 -
24
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
9,045
9,136

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of 0.01p each
8,113,000
8,113,000
811
811
B Ordinary of 0.01p each
1,765,000
1,765,000
177
177
C Ordinary of 0.01p each
1,887,000
1,887,000
189
189
D Ordinary of 0.01p each
2,549,088
2,549,088
255
255
14,314,088
14,314,088
1,432
1,432
2022
2021
2022
2021
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference A of 0.01p each
3,427,000
3,427,000
343
343
Preference B of 0.01p each
9,291,269
9,291,269
929
929
12,718,269
12,718,269
1,272
1,272
Preference shares classified as equity
1,272
1,272
Total equity share capital
2,704
2,704
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 34 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
38,648
325,801
38,648
32,587
Between two and five years
65,239
716,093
65,239
21,725
103,887
1,041,894
103,887
54,312
27
Events after the reporting date

Following the year end the parent company undertook three fundraising rounds. On 18 April 2023 1,082,222 Ordinary AA shares were issued with a par value of £0.0001 per share and generating share premium of £1,309,380. On 12 May 2023 198,771 Ordinary AA shares were issued with a par value of £0.0001 per share and generating share premium of £240,493. On 7 September 2023 9,458,818 Ordinary X shares were issued with a par value of £0.0001 per share and generating share premium of £2,188,108. Also on 7 September 851,7854 Series A Preference shares were issued with a par value of £0.0001 per share.

28
Directors' transactions
Description
% Rate
Opening balance
Closing balance
£
£
J Crabtree - Director's loan
-
250,000
250,000
250,000
250,000
ADDITIVE MANUFACTURING TECHNOLOGIES LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 35 -
29
Cash absorbed by group operations
2022
2021
£
£
Loss for the year after tax
(5,623,276)
(4,634,531)
Adjustments for:
Taxation charged/(credited)
122,088
(36,079)
Finance costs
207,875
105,863
Investment income
(33)
-
0
(Gain)/loss on disposal of tangible fixed assets
-
5,493
Depreciation and impairment of tangible fixed assets
607,726
291,688
Increase in provisions
270,000
-
Movements in working capital:
Increase in stocks
(773,672)
(291,511)
Increase in debtors
(1,335,683)
(1,154,615)
Increase/(decrease) in creditors
1,895,368
(933,955)
Increase in deferred income
717,267
998,403
Cash absorbed by operations
(3,912,340)
(5,649,244)
30
Analysis of changes in net funds/(debt) - group
1 January 2022
Cash flows
Exchange rate movements
31 December 2022
£
£
£
£
Cash at bank and in hand
3,299,428
(2,167,056)
(31,274)
1,101,098
Borrowings excluding overdrafts
(130,211)
(2,869,789)
-
(3,000,000)
Obligations under finance leases
(347,966)
84,484
-
(263,482)
2,821,251
(4,952,361)
(31,274)
(2,162,384)
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