IRIS Accounts Production v23.4.0.336 SC284351 Board of Directors Board of Directors 1.6.22 31.5.23 31.5.23 12.3.24 false true false false false true false Auditors Opinion iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC2843512022-05-31SC2843512023-05-31SC2843512022-06-012023-05-31SC2843512021-05-31SC2843512021-06-012022-05-31SC2843512022-05-31SC284351ns15:Scotland2022-06-012023-05-31SC284351ns14:PoundSterling2022-06-012023-05-31SC284351ns10:Director12022-06-012023-05-31SC284351ns10:Director22022-06-012023-05-31SC284351ns10:PrivateLimitedCompanyLtd2022-06-012023-05-31SC284351ns10:SmallEntities2022-06-012023-05-31SC284351ns10:Audited2022-06-012023-05-31SC284351ns10:SmallCompaniesRegimeForDirectorsReport2022-06-012023-05-31SC284351ns10:SmallCompaniesRegimeForAccounts2022-06-012023-05-31SC284351ns10:FullAccounts2022-06-012023-05-31SC28435112022-06-012023-05-31SC284351ns10:Director42022-06-012023-05-31SC284351ns10:CompanySecretary12022-06-012023-05-31SC284351ns10:RegisteredOffice2022-06-012023-05-31SC284351ns5:CurrentFinancialInstruments2023-05-31SC284351ns5:CurrentFinancialInstruments2022-05-31SC284351ns5:ShareCapital2023-05-31SC284351ns5:ShareCapital2022-05-31SC284351ns5:SharePremium2023-05-31SC284351ns5:SharePremium2022-05-31SC284351ns5:RevaluationReserve2023-05-31SC284351ns5:RevaluationReserve2022-05-31SC284351ns5:RetainedEarningsAccumulatedLosses2023-05-31SC284351ns5:RetainedEarningsAccumulatedLosses2022-05-31SC284351ns5:IntangibleAssetsOtherThanGoodwill2022-06-012023-05-31SC284351ns5:PlantMachinery2022-06-012023-05-31SC284351ns5:FurnitureFittings2022-06-012023-05-31SC284351ns5:MotorVehicles2022-06-012023-05-31SC284351ns5:ComputerEquipment2022-06-012023-05-31SC284351ns5:PatentsTrademarksLicencesConcessionsSimilar2022-05-31SC284351ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-05-31SC284351ns5:PatentsTrademarksLicencesConcessionsSimilar2022-06-012023-05-31SC284351ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-06-012023-05-31SC284351ns5:PatentsTrademarksLicencesConcessionsSimilar2023-05-31SC284351ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-05-31SC284351ns5:PatentsTrademarksLicencesConcessionsSimilar2022-05-31SC284351ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-05-31SC284351ns5:PlantMachinery2022-05-31SC284351ns5:FurnitureFittings2022-05-31SC284351ns5:MotorVehicles2022-05-31SC284351ns5:ComputerEquipment2022-05-31SC284351ns5:PlantMachinery2023-05-31SC284351ns5:FurnitureFittings2023-05-31SC284351ns5:MotorVehicles2023-05-31SC284351ns5:ComputerEquipment2023-05-31SC284351ns5:PlantMachinery2022-05-31SC284351ns5:FurnitureFittings2022-05-31SC284351ns5:MotorVehicles2022-05-31SC284351ns5:ComputerEquipment2022-05-31SC284351ns5:UnlistedNon-exchangeTradedns5:CostValuation2022-05-31SC284351ns5:UnlistedNon-exchangeTraded2023-05-31SC284351ns5:UnlistedNon-exchangeTraded2022-05-31SC284351ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-31SC284351ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-05-31















GAS SENSING SOLUTIONS LTD.

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2023






GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MAY 2023




Page

Company Information 1

Statement of Financial Position 2

Notes to the Financial Statements 3


GAS SENSING SOLUTIONS LTD.

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST MAY 2023







DIRECTORS: N Ricketts
W Kane
J Murray-Brown



SECRETARY: MBM Secretarial Services Limited



REGISTERED OFFICE: Suite 2, Ground Floor Orchard Brae House
30 Queensferry Road
Edinburgh
EH4 2HS



REGISTERED NUMBER: SC284351 (Scotland)



SENIOR STATUTORY
AUDITOR:
Joanne Gibson



AUDITORS: JRW
Chartered Accountants &
Statutory Auditor
19 Buccleuch Street
Hawick
Roxburghshire
TD9 0HL

GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

STATEMENT OF FINANCIAL POSITION
31ST MAY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 1,836,056 1,802,706
Tangible assets 5 167,452 212,478
Investments 6 2,022,084 2,022,084
4,025,592 4,037,268

CURRENT ASSETS
Stocks 7 418,662 657,904
Debtors 8 810,300 600,990
Cash at bank and in hand 933,039 789,545
2,162,001 2,048,439
CREDITORS
Amounts falling due within one year 9 1,055,435 1,474,396
NET CURRENT ASSETS 1,106,566 574,043
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,132,158

4,611,311

CAPITAL AND RESERVES
Called up share capital 5,852 5,852
Share premium 5,359,436 5,359,436
Revaluation reserve 2,067,065 2,067,065
Retained earnings (2,300,195 ) (2,821,042 )
5,132,158 4,611,311

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21st February 2024 and were signed on its behalf by:



J Murray-Brown - Director



N Ricketts - Director


GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MAY 2023

1. STATUTORY INFORMATION

Gas Sensing Solutions Ltd. is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

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

Going concern
These accounts are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future and on preparing the budget for 2023/24, anticipate a contraction in sales with grant income securing a sustainable cash position evidenced by:

- Monthly sales driven by customer demand rather than material supply availability
- Continued sourcing of grant funding opportunities
- Gross profit margin maintained
- Careful control of stock levels while moving to new product designs
- Monitoring of overheads, including utilities and wage costs
- Continual review of aged debtors and creditors
- Management accounts for 2023/24 show strong margin and sustainable cash flow.

The directors are all well aware of the impact that ongoing worldwide events have had on the industry as well as the economy. The budget indicates that the company will continue to operate within agreed borrowing limits. At this specific time, the directors assume it will continue as a going concern and therefore the accounts are prepared on this basis.

GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MAY 2023

2. ACCOUNTING POLICIES - continued

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

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.

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.

Intangible assets other than goodwill
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents and licences10 years
Development costs10 years

GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MAY 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Plant and equipment - at variable rates on reducing balance
Fixtures and fittings - 15% on reducing balance
Device growth facility - 10% on cost
Computer equipment - 33% on cost

Fixed asset investments
Investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Fair value has been obtained from the price used in recent share issues. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. In the case of finished goods and work in progress 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.

GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MAY 2023

2. ACCOUNTING POLICIES - continued

Financial assets
Basic financial assets, including trade and other debtors and bank balances, are initially recognised at transaction price.
At the end of each reporting period financial assets measured at cost are assessed for evidence of impairment. Any impairment loss is recognised in the Income Statement.
Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled.

Financial liabilities
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These are classed as current liabilities is payment is due within one year or less. If not they are presented as non-current liabilities.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Compound instruments
The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability and amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.

Equity instruments
Equity instruments issued by the company 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 company.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.


GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MAY 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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 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.

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

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 24 (2022 - 28 ) .

GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MAY 2023

4. INTANGIBLE FIXED ASSETS
Patents
and Development
licences costs Totals
£    £    £   
COST
At 1st June 2022 469,471 6,435,237 6,904,708
Additions 6,000 434,540 440,540
At 31st May 2023 475,471 6,869,777 7,345,248
AMORTISATION
At 1st June 2022 341,160 4,760,842 5,102,002
Amortisation for year 28,236 378,954 407,190
At 31st May 2023 369,396 5,139,796 5,509,192
NET BOOK VALUE
At 31st May 2023 106,075 1,729,981 1,836,056
At 31st May 2022 128,311 1,674,395 1,802,706

5. TANGIBLE FIXED ASSETS
Fixtures Device
Plant and and growth Computer
equipment fittings facility equipment Totals
£    £    £    £    £   
COST
At 1st June 2022 431,144 27,128 300,000 75,331 833,603
Additions 20,538 4,000 - 18,801 43,339
At 31st May 2023 451,682 31,128 300,000 94,132 876,942
DEPRECIATION
At 1st June 2022 299,152 14,419 263,571 43,983 621,125
Charge for year 38,414 2,308 36,429 11,214 88,365
At 31st May 2023 337,566 16,727 300,000 55,197 709,490
NET BOOK VALUE
At 31st May 2023 114,116 14,401 - 38,935 167,452
At 31st May 2022 131,992 12,709 36,429 31,348 212,478

GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MAY 2023

6. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST OR VALUATION
At 1st June 2022
and 31st May 2023 2,022,084
NET BOOK VALUE
At 31st May 2023 2,022,084
At 31st May 2022 2,022,084

Cost or valuation at 31st May 2023 is represented by:

Unlisted
investments
£   
Valuation in 2023 2,022,084

Investments above include:

Cambridge Respiratory Innovations Limited £2,012,084. The holding in CRIL represents 15.5% of the issued share capital of that company.

III-V-EPI £10,000. Shareholders loan eligble to be converted into shares. The holding in III-V-EPI represents 29.63% of the issued share capital of that company.

7. STOCKS
2023 2022
£    £   
Raw materials 312,360 450,488
Work-in-progress 90,266 172,036
Finished goods 16,036 35,380
418,662 657,904

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 563,028 496,483
Other debtors 62,090 32,098
Tax 126,346 -
VAT 58,836 72,409
810,300 600,990

GAS SENSING SOLUTIONS LTD. (REGISTERED NUMBER: SC284351)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MAY 2023

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 243,293 307,893
Social security and other taxes 23,696 32,314
Other creditors 4,951 134,436
Accruals and deferred income 783,495 999,753
1,055,435 1,474,396

10. LEASING AGREEMENTS

The company has future operating lease commitments of £47,500 per annum. Until any breaks in the leases these total £24,166.

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

The Report of the Auditors was unqualified.

Joanne Gibson (Senior Statutory Auditor)
for and on behalf of JRW

12. RELATED PARTY DISCLOSURES

During the year the company entered into the following transactions with related parties:

Mr N Ricketts
Consultancy fees and reimbursement of expenses of £19,246 (2022, £18,171) were paid to 720 Group Ltd. The amount outstanding in respect to this company at the year end was £1,500 (2022, £1,500).

Mr J A Fuller
Consultancy fees and reimbursement of expenses of £139,885 (2022, £Nil) were paid to Leading Solutions Ltd. The amount outstanding in respect to this company at the year end was £14,730 (2022, £Nil).

13. ULTIMATE CONTROLLING PARTY

No individual shareholder has a controlling interest in the company.