Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31Laurence Kemball-Cook Twin Cedars LLC405760No description of principal activitytrue2022-01-0122false25false 06980029 2022-01-01 2022-12-31 06980029 2021-01-01 2021-12-31 06980029 2022-12-31 06980029 2021-12-31 06980029 2021-01-01 06980029 1 2022-01-01 2022-12-31 06980029 d:Director2 2022-01-01 2022-12-31 06980029 c:Buildings c:LongLeaseholdAssets 2022-01-01 2022-12-31 06980029 c:Buildings c:LongLeaseholdAssets 2022-12-31 06980029 c:Buildings c:LongLeaseholdAssets 2021-12-31 06980029 c:PlantMachinery 2022-01-01 2022-12-31 06980029 c:PlantMachinery 2022-12-31 06980029 c:PlantMachinery 2021-12-31 06980029 c:PlantMachinery c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06980029 c:ComputerEquipment 2022-01-01 2022-12-31 06980029 c:ComputerEquipment 2022-12-31 06980029 c:ComputerEquipment 2021-12-31 06980029 c:ComputerEquipment c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06980029 c:OtherPropertyPlantEquipment 2022-01-01 2022-12-31 06980029 c:OtherPropertyPlantEquipment 2022-12-31 06980029 c:OtherPropertyPlantEquipment 2021-12-31 06980029 c:OtherPropertyPlantEquipment c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06980029 c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06980029 c:PatentsTrademarksLicencesConcessionsSimilar 2022-01-01 2022-12-31 06980029 c:PatentsTrademarksLicencesConcessionsSimilar 2022-12-31 06980029 c:PatentsTrademarksLicencesConcessionsSimilar 2021-12-31 06980029 c:CurrentFinancialInstruments 2022-12-31 06980029 c:CurrentFinancialInstruments 2021-12-31 06980029 c:Non-currentFinancialInstruments 2022-12-31 06980029 c:Non-currentFinancialInstruments 2021-12-31 06980029 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 06980029 c:CurrentFinancialInstruments c:WithinOneYear 2021-12-31 06980029 c:Non-currentFinancialInstruments c:AfterOneYear 2022-12-31 06980029 c:Non-currentFinancialInstruments c:AfterOneYear 2021-12-31 06980029 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2022-12-31 06980029 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2021-12-31 06980029 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2022-12-31 06980029 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2021-12-31 06980029 c:ShareCapital 2022-12-31 06980029 c:ShareCapital 2021-01-01 2021-12-31 06980029 c:ShareCapital 2021-12-31 06980029 c:ShareCapital 2021-01-01 06980029 c:SharePremium 2022-12-31 06980029 c:SharePremium 2021-01-01 2021-12-31 06980029 c:SharePremium 2021-12-31 06980029 c:SharePremium 2021-01-01 06980029 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06980029 c:RetainedEarningsAccumulatedLosses 2022-12-31 06980029 c:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 06980029 c:RetainedEarningsAccumulatedLosses 2021-12-31 06980029 c:RetainedEarningsAccumulatedLosses 2021-01-01 06980029 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-01-01 2022-12-31 06980029 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 06980029 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2021-12-31 06980029 d:FRS102 2022-01-01 2022-12-31 06980029 d:Audited 2022-01-01 2022-12-31 06980029 d:FullAccounts 2022-01-01 2022-12-31 06980029 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 06980029 c:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2022-01-01 2022-12-31 06980029 c:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2022-12-31 06980029 c:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2021-12-31 06980029 c:WithinOneYear 2022-12-31 06980029 c:WithinOneYear 2021-12-31 06980029 c:BetweenOneFiveYears 2022-12-31 06980029 c:BetweenOneFiveYears 2021-12-31 06980029 d:SmallCompaniesRegimeForAccounts 2022-01-01 2022-12-31 06980029 c:PatentsTrademarksLicencesConcessionsSimilar c:ExternallyAcquiredIntangibleAssets 2022-01-01 2022-12-31 06980029 2 2022-01-01 2022-12-31 06980029 6 2022-01-01 2022-12-31 06980029 13 2022-01-01 2022-12-31 06980029 c:PatentsTrademarksLicencesConcessionsSimilar c:OwnedIntangibleAssets 2022-01-01 2022-12-31 iso4217:GBP xbrli:pure

Registered number: 06980029










PAVEGEN SYSTEMS LTD










FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2022

 
PAVEGEN SYSTEMS LTD
REGISTERED NUMBER: 06980029

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 5 
34,189
56,469

Tangible assets
 6 
94,336
91,948

Investments
 7 
68
68

  
128,593
148,485

Current assets
  

Stocks
  
335,935
356,931

Debtors: amounts falling due within one year
 8 
1,090,445
786,254

Cash at bank and in hand
  
342,110
1,459,433

  
1,768,490
2,602,618

Creditors: amounts falling due within one year
 9 
(847,225)
(1,013,055)

Net current assets
  
 
 
921,265
 
 
1,589,563

Total assets less current liabilities
  
1,049,858
1,738,048

Creditors: amounts falling due after more than one year
 10 
(24,166)
(225,634)

Provisions for liabilities
  

Other provisions
 12 
(28,923)
(33,498)

  
 
 
(28,923)
 
 
(33,498)

Net assets
  
996,769
1,478,916


Capital and reserves
  

Called up share capital 
  
2,402
2,402

Share premium account
  
9,574,480
9,574,480

Profit and loss account
  
(8,580,113)
(8,097,966)

  
996,769
1,478,916


Page 1

 
PAVEGEN SYSTEMS LTD
REGISTERED NUMBER: 06980029
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr L B Kemball-Cook
Director

Date: 23 February 2024

The notes on pages 4 to 17 form part of these financial statements.

Page 2

 
PAVEGEN SYSTEMS LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2021
2,319
8,629,926
(7,116,717)
1,515,528



Loss for the year

-
-
(981,249)
(981,249)

Shares issued during the year
83
944,554
-
944,637



At 1 January 2022
2,402
9,574,480
(8,097,966)
1,478,916



Loss for the year

-
-
(482,147)
(482,147)


At 31 December 2022
2,402
9,574,480
(8,580,113)
996,769


The notes on pages 4 to 17 form part of these financial statements.

Page 3

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Pavegen Systems Ltd is a private company limited by shares incorporated in England and Wales within the United Kingdom. The address of the registered office is given in the company information page of these financial statements.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The Company is exempt from the requirement to prepare consolidated financial statements, by virtue of the group it heads qualifying as small as set out in section 383 of the Companies Act 2006. 

 
2.3

Going concern

The company has relied and continues to rely on financial support of investors to provide working capital to continue research and development (R&D).
The current year saw the company make a pre-tax loss of £727,584 as a result of its focus on the R&D of the floor tile. Net assets are £996,769, which in the context of the loss in the year raises some doubt over the company's ability to meet its debts as they fall due and realise its assets in the normal course of business, and therefore to continue as a going concern. 
In 2023 the company continued to be loss making but has been able to raise additional funds in order to continue R&D. At the end of 2023 (unaudited) the company has raised additional funds of £940,639 and incurred an expected loss of £1m.
Projections for 2024 indicate that the future of the company is one of expansion, once the new tiles are fully developed and available, and the company is able to generate recurring revenues on its instalments of tiles. Although the sales pipeline for 2024 is positive, increased revenue is not certain until contracts are signed and even with increased sales, it is likely that the company will continue to rely on additional investment, which by its nature is uncertain, although the company has been successful in the past raising £4m in the last 5 years.
On this basis the directors consider there is a material uncertainty over the going concern of the company but that it continues to be appropriate that the financial statements continue to be prepared on a going concern basis.

Page 4

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP, rounded to the nearest £1.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 5

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Revenue

Revenue from the sale and rental of tiles is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from the sale and rental of tiles is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale and rental of tiles from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Sale of floor tiles
Income is recognised when the company has transferred the significant risks and rewards of ownership to the buyer, which is usually the earlier of the date goods are shipped or date the installation of the floor tiles has been completed.
Rental of floor tiles
Income is recognised on a straight-line basis over the term of the rental.
Data sales
Income is recognised when the company value is transferred to the buyer, which is usually the earlier of the date goods are shipped or date the installation of the floor tiles has been completed.

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 6

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 7

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.13

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
Options granted by the company have been considered and are deemed immaterial to these financial statements. 
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

 
2.14

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 8

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.15

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Patents
-
20%
straight line

 
2.16

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Assets under construction
-
No depreciation
Plant and machinery
-
20%
straight-line
Computer and office equipment
-
33%
straight-line
Project equipment
-
33%
straight-line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 9

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.22

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

Page 10

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.23

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

 
2.24

Convertible debt

The proceeds received on issue of the Company's convertible debt are allocated into their liability and equity components and presented separately in the Balance sheet.

The amount initially attributed to the debt component equals the discounted cash flows using a market rate of interest that would be payable on a similar debt instrument that did not include an option to convert.

The difference between the net proceeds of the convertible debt and the amount allocated to the debt component is credited direct to equity and is not subsequently remeasured. On conversion, the debt and equity elements are credited to share capital and share premium as appropriate.

Transaction costs that relate to the issue of the instrument are allocated to the liability and equity components of the instrument in proportion to the allocation of proceeds.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Other than those disclosed in note 2, there were no other judgements or key sources of estimation uncertainty.


4.


Employees

The average monthly number of employees, including directors, during the year was 25 (2021 - 22).

Page 11

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Intangible assets




Patents

£



Cost


At 1 January 2022
180,986


Additions
11,552


Disposals
(8,230)



At 31 December 2022

184,308



Amortisation


At 1 January 2022
124,517


Charge for the year on owned assets
27,248


On disposals
(1,646)



At 31 December 2022

150,119



Net book value



At 31 December 2022
34,189



At 31 December 2021
56,469



Page 12

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Tangible fixed assets





Assets under construction
Plant and machinery
Computer and office equipment
Project equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2022
77,225
175,057
74,335
43,099
369,716


Additions
320
-
16,395
-
16,715



At 31 December 2022

77,545
175,057
90,730
43,099
386,431



Depreciation


At 1 January 2022
-
167,469
67,200
43,099
277,768


Charge for the year on owned assets
-
3,794
10,533
-
14,327



At 31 December 2022

-
171,263
77,733
43,099
292,095



Net book value



At 31 December 2022
77,545
3,794
12,997
-
94,336



At 31 December 2021
77,225
7,588
7,135
-
91,948

Page 13

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
68



At 31 December 2022
68





8.


Debtors

2022
2021
£
£


Trade debtors
517,097
225,473

Other debtors
54,961
36,098

Prepayments and accrued income
41,095
119,265

Tax recoverable
477,292
405,418

1,090,445
786,254



9.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank overdrafts
-
359

Bank loans
10,000
10,000

Other loans
208,411
390,358

Trade creditors
317,663
248,751

Amounts owed to group undertakings
68
68

Other taxation and social security
44,535
31,273

Other creditors
5,924
3,281

Accruals and deferred income
260,624
328,965

847,225
1,013,055


Page 14

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
24,166
34,167

Other loans
-
191,467

24,166
225,634



11.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
10,000
10,000

Other loans
208,411
390,358


218,411
400,358

Amounts falling due 1-2 years

Bank loans
10,000
10,000

Other loans
-
191,467


10,000
201,467

Amounts falling due 2-5 years

Bank loans
14,166
24,167


242,577
625,992


The bank loan was made under the Bounce Back Loan Scheme in response to COVID-19. Interest is 2.5% pa, and the loan is repayable in equal monthly instalments after an initial repayment-free period of 12 months. The final payment is due on 3 May 2026.
Other loans comprises a convertible loan note plus rolled up interest at 8% pa, which is unsecured. No value has been ascribed to the equity component. The term of the arrangement was renegotiated after the balance sheet, and is repayable in 3 instalments, the final instalment being due on April 2023.  

Page 15

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Provisions





Warranties

£





At 1 January 2022
33,498


Charged to profit or loss
28,923


Utilised in year
(33,498)



At 31 December 2022
28,923

The warranty provision relates to estimated costs for the company to repair or replace any products which are deemed to be faulty.


13.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £11,075 (2021 - £9,730). Contributions totalling £5,126 (2021 - £2,295) were payable to the fund at the balance sheet date and are included in creditors.


14.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
61,220
22,500

Later than 1 year and not later than 5 years
55,000
-

116,220
22,500

Page 16

 
PAVEGEN SYSTEMS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


Related party transactions

During the year, the Company made advances of £Nil (2021 - £Nil) and received repayments of £Nil (2021 - £2,686) to Laurence Kemball-Cook, a director of the Company. At the year end, there was £1,917 (2021 - £1,917) owed by Laurence Kemball-Cook.
During the year, the Company made advances of £Nil (2021 - £25,032) and received repayments of £Nil (2021 - £Nil) to Julian Kemball-Cook, a director At the year end, there was £Nil (2021 - £Nil) owed to Julian Kemball-Cook. 
Twin Cedars LLC, a company in which Mr J J Martin is also a director, previously purchased convertible loan notes from Pavegen Systems Ltd. During the year, interest of £15,402 (2021 - £28,520) was charged and repayments of £390,358 (2021 - £25,735) were made to Twin Cedars LLC. At the year end, amounts owed to Twin Cedars LLC totalled £158,667 (2021 - £581,825). 
At the balance sheet date, key management personnel owed the business £Nil (2021 - £3,768). 


16.


Post balance sheet events

After the year end, 2,198,200 A Ordinary shares were allotted. The aggregate nominal value of these shares was £21.98. Consideration received for the shares allotted totalled £298,735.


17.


Auditor's information

The auditor's report on the financial statements for the year ended 31 December 2022 was unqualified.

The audit report was signed on 23 February 2024 by David Boosey BA (Hons) FCA (Senior statutory auditor) on behalf of MHA.

 
Page 17