GAS SENSING SOLUTIONS LTD. |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2023 |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
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 |
Tangible assets | 5 |
Investments | 6 |
CURRENT ASSETS |
Stocks | 7 |
Debtors | 8 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Revaluation reserve |
Retained earnings | ( |
) | ( |
) |
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 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 licences | 10 years |
Development costs | 10 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 |
Plant and equipment | - |
Fixtures and fittings | - |
Device growth facility | - |
Computer equipment | - |
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 |
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 |
Additions |
At 31st May 2023 |
AMORTISATION |
At 1st June 2022 |
Amortisation for year |
At 31st May 2023 |
NET BOOK VALUE |
At 31st May 2023 |
At 31st May 2022 |
5. | TANGIBLE FIXED ASSETS |
Fixtures | Device |
Plant and | and | growth | Computer |
equipment | fittings | facility | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st June 2022 |
Additions |
At 31st May 2023 |
DEPRECIATION |
At 1st June 2022 |
Charge for year |
At 31st May 2023 |
NET BOOK VALUE |
At 31st May 2023 |
At 31st May 2022 |
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 |
NET BOOK VALUE |
At 31st May 2023 |
At 31st May 2022 |
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 |
Work-in-progress |
Finished goods |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
VAT |
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 |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
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. |
for and on behalf of |
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. |