Company registration number 4634797 (England and Wales)
HYBRID INSTRUMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
HYBRID INSTRUMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
HYBRID INSTRUMENTS LIMITED
BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
2,162
2,394
Tangible assets
5
42,159
65,413
44,321
67,807
Current assets
Stocks
6
11,804
10,825
Debtors
7
10,958
13,686
Cash at bank and in hand
45,394
-
0
68,156
24,511
Creditors: amounts falling due within one year
8
(56,966)
(78,169)
Net current assets/(liabilities)
11,190
(53,658)
Total assets less current liabilities
55,511
14,149
Creditors: amounts falling due after more than one year
9
(44,511)
(67,918)
Net assets/(liabilities)
11,000
(53,769)
Capital and reserves
Called up share capital
10
200
200
Profit and loss reserves
10,800
(53,969)
Total equity
11,000
(53,769)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 2 February 2024 and are signed on its behalf by:
Dr Frank Cave
Professor Malcolm Joyce
Director
Director
Company Registration No. 4634797
HYBRID INSTRUMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
1
Accounting policies
Company information

Hybrid Instruments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 14 Mannin Way, Lancaster Business Park, Lancaster, LA1 3SW. The company's main place of business is Lancaster University Environment Centre, Lancaster University, Lancaster, LA1 4YQ

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.2
Going concern

The company continues to rely on the support of its directors who are also the majority shareholders, who have confirmed their willingness to continue supporting the company. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have considered a period of at least 12 months from the date of approval. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Turnover consists of two main elements; product sales and grant income.

 

Product sales are recognised net of VAT and trade discounts when ownership of the goods has transferred to the customer.

 

Grant income is recognised to the extent that it matches the timing of the expenditure incurred and approved. Any grant income received after the year end relating to current year grant expenditure is accrued accordingly.

1.4
Intangible fixed assets other than goodwill

Intangible assets consist of patents. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of 18 years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.

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
18 years straight line
1.5
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.

HYBRID INSTRUMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 3 -

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 machinery
2-3 years straight line
Computer equipment
2 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 credited or charged to profit or loss.

1.6
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.

1.7
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 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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

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 company after deducting all of its liabilities.

HYBRID INSTRUMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities

Basic financial liabilities, including creditors, 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.

1.10
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. 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.

1.11
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.

1.12
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.

HYBRID INSTRUMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 5 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Grant funded asset

During the previous year the company was funded to develop and build a prototype asset which remains legally owned by the company. The costs associated with this build were capitalised in fixed assets, with the associated grant income deferred over the life of the asset.

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.

Stock

Due to the specialist nature of the company's products, stock can be typically very slow moving. The director's have reviewed the stock held at the year end date against their current expectation of the stock value, and do not believe that there is any material overstatement of such stock.

3
Employees

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

2023
2022
Number
Number
Total
3
4
HYBRID INSTRUMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 6 -
4
Intangible fixed assets
Patents
£
Cost
At 1 August 2022 and 31 July 2023
4,478
Amortisation and impairment
At 1 August 2022
2,084
Amortisation charged for the year
232
At 31 July 2023
2,316
Carrying amount
At 31 July 2023
2,162
At 31 July 2022
2,394
5
Tangible fixed assets
Plant and machinery
Computer equipment
Total
£
£
£
Cost
At 1 August 2022
92,491
11,553
104,044
Additions
-
0
525
525
At 31 July 2023
92,491
12,078
104,569
Depreciation and impairment
At 1 August 2022
27,078
11,553
38,631
Depreciation charged in the year
23,713
66
23,779
At 31 July 2023
50,791
11,619
62,410
Carrying amount
At 31 July 2023
41,700
459
42,159
At 31 July 2022
65,413
-
0
65,413
6
Stocks
2023
2022
£
£
Stocks
11,804
10,825

Due to the nature of the business, stock can be very slow moving for the company. The directors have reviewed the level of stock held and confirm that the valuation of stock held at the balance sheet is not materially impaired.

HYBRID INSTRUMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
391
3,991
Other debtors
601
-
0
Prepayments and accrued income
9,966
9,695
10,958
13,686
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
-
0
21,022
Trade creditors
14,802
19,917
Taxation and social security
8,032
6,052
Development grants
18,410
18,410
Other creditors
4,997
4,874
Accruals and deferred income
10,725
7,894
56,966
78,169

Included within creditors falling due within one year is £18,410 of deferred grant income relating to a funded asset which is owned by the company. Such amounts are expected to reverse in the next accounting period to offset the depreciation of the asset over its useful economic life.

9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other borrowings
15,725
15,725
Development grants
18,410
36,820
Other creditors
10,376
15,373
44,511
67,918

Included within creditors falling due in greater than one year is £18,410 of deferred grant income relating to a funded asset which is owned by the company. Such amounts are expected to reverse in future periods to offset the depreciation of the asset over its useful economic life.

HYBRID INSTRUMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
162
162
162
162
'A' Ordinary of £1 each
38
38
38
38
200
200
200
200

Both classes of shares have full voting rights in proportion with percentages of total issued share capital held.

11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Jenny McCabe
Statutory Auditor:
MHA Moore and Smalley
12
Operating lease commitments

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

2023
2022
£
£
6,841
13,682
13
Related party transactions
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Entities holding a minority shareholding
79,700
6,930
9,359
8,840
HYBRID INSTRUMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
13
Related party transactions
(Continued)
- 9 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities holding a minority shareholding
-
1,632
Key management personnel
15,725
15,725
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