Company registration number 10737001 (England and Wales)
PRECISION ROBOTICS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FILLETED ACCOUNTS
Tavistock House South
Tavistock Square
Rayner Essex LLP
London
Chartered Accountants
WC1H 9LG
PRECISION ROBOTICS LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
PRECISION ROBOTICS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
10,203
14,798
Investments
7
97
97
10,300
14,895
Current assets
Debtors
8
1,336,641
1,758,818
Cash at bank and in hand
11,369,734
11,569,787
12,706,375
13,328,605
Creditors: amounts falling due within one year
9
(171,923)
(132,725)
Net current assets
12,534,452
13,195,880
Total assets less current liabilities
12,544,752
13,210,775
Provisions for liabilities
10
(10,300)
(10,300)
Net assets
12,534,452
13,200,475
Capital and reserves
Called up share capital
30
30
Share premium account
10,510,445
10,510,445
Profit and loss reserves
2,023,977
2,690,000
Total equity
12,534,452
13,200,475

The directors of the company have elected not to include a copy of the income statement 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 4 July 2024 and are signed on its behalf by:
Dr B Lo
Director
Company registration number 10737001 (England and Wales)
PRECISION ROBOTICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Notes
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
30
29,999,984
(7,721,484)
22,278,530
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(9,078,055)
(9,078,055)
Reduction of shares
11 & 12
-
0
(19,489,539)
19,489,539
-
0
Balance at 31 December 2022
30
10,510,445
2,690,000
13,200,475
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(666,023)
(666,023)
Balance at 31 December 2023
30
10,510,445
2,023,977
12,534,452
PRECISION ROBOTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Precision Robotics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 84, 126O-128O I-Hub, Imperial College, White City, 84 Wood Lane, London, United Kingdom, W12 0BZ.

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

At 3true1 December 2023 the company had a cash balance of £11,369,734. The directors have considered the company's cash flow requirements for a period of 12 months from the date of approval of these financial statements and they consider that the company has adequate resources to enable the company to continue to operate for at least that period. Consequently, the directors consider that it is appropriate for the financial statements to be prepared on a going concern basis.

1.3
Research and development expenditure

Research expenditure is written off 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.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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 & licences
50% 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.

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 & Machinery
25% straight line
PRECISION ROBOTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
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.

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.

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, 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.

PRECISION ROBOTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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 statement of financial position 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.

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.

1.10
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.

PRECISION ROBOTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 company’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 income statement, 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 when the company has 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.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.

1.13
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.

1.14
Retirement benefits

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

1.15
Leases

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 leases asset are consumed.

PRECISION ROBOTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.16
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

The directors have exercised their judgement in respect of the decision to not capitalise any development costs this year relating to the company's research and development programme. They have taken into account that the company is at an early stage of this development and that future economic benefits would be dependent upon the success of the company's products, and therefore they consider that the capitalisation criteria for intangible assets have not been met in this financial year.

3
Employees

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

2023
2022
Number
Number
Total
7
10
4
Taxation
2023
2022
£
£
Current tax
Benefit arising from a previously unrecognised tax loss or credit
(214,664)
(225,511)

 

The credit in the year represents the R&D tax relief received relating to the prior year claim.



The company is not recognising a deferred tax asset due to the uncertainty over the generation of future profits.

PRECISION ROBOTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Intangible fixed assets
Other
£
Cost
At 1 January 2023 and 31 December 2023
1,561
Amortisation and impairment
At 1 January 2023 and 31 December 2023
1,561
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
99,670
Additions
10,367
Disposals
(11,468)
At 31 December 2023
98,569
Depreciation and impairment
At 1 January 2023
84,872
Depreciation charged in the year
14,962
Eliminated in respect of disposals
(11,468)
At 31 December 2023
88,366
Carrying amount
At 31 December 2023
10,203
At 31 December 2022
14,798
7
Fixed asset investments
2023
2022
£
£
Investments in shares
97
97

The investment in shares comprises a 10% shareholding in Precision Robotics (Hong Kong) Limited, a company incorporated in Hong Kong, under common control.

PRECISION ROBOTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by companies under common control
890,000
1,690,000
Other debtors
446,641
68,818
1,336,641
1,758,818

Amounts owed by companies under common control are unsecured, interest free and repayable on demand.

 

9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
131,573
114,884
Other creditors
40,350
17,841
171,923
132,725
10
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
10,300
10,300
11
Share premium account

During the prior year, in accordance with the Companies Act 2006, the company undertook a capital reduction exercise whereby the share premium account of the company was reduced by £19,489,539 from £29,999,984 to £10,510,455. The amount by which the share premium account has been reduced has been credited to reserves. At the point of transfer the amount becomes distributable.

12
Profit and loss reserves

During the prior year, in accordance with s845 Companies Act 2006, the company distributed in specie to its shareholders 90% of its shareholding in Precision Robotics (Honk Kong) Limited.

PRECISION ROBOTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
13
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
92,725
30,363
Between two and five years
123,634
-
0
216,359
30,363
14
Related party transactions

During the year, the company received repayments totalling £800,000 against the loan due from Precision Robotics (Hong Kong) Limited, a company under common control. The balance outstanding at the year end was £890,000 (2022: £1,690,000).

15
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:
Lucy Kate Ghawss ACA
Statutory Auditor:
Rayner Essex LLP
2023-12-312023-01-01false30 July 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityThis audit opinion is unqualifiedDr B LoProfessor A YoungMr Y ChenMr H ChenMr X Zhangfalsefalse107370012023-01-012023-12-31107370012023-12-31107370012022-12-3110737001core:OtherPropertyPlantEquipment2023-12-3110737001core:OtherPropertyPlantEquipment2022-12-3110737001core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3110737001core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3110737001core:CurrentFinancialInstruments2023-12-3110737001core:CurrentFinancialInstruments2022-12-3110737001core:ShareCapital2023-12-3110737001core:ShareCapital2022-12-3110737001core:SharePremium2023-12-3110737001core:SharePremium2022-12-3110737001core:RetainedEarningsAccumulatedLosses2023-12-3110737001core:RetainedEarningsAccumulatedLosses2022-12-3110737001core:ShareCapital2021-12-3110737001core:SharePremium2021-12-3110737001core:RetainedEarningsAccumulatedLosses2021-12-3110737001bus:Director12023-01-012023-12-3110737001core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31107370012022-01-012022-12-3110737001core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3110737001core:ShareCapital2022-01-012022-12-3110737001core:SharePremium2022-01-012022-12-3110737001core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3110737001core:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3110737001core:ComputerEquipment2023-01-012023-12-311073700112023-01-012023-12-311073700112022-01-012022-12-3110737001core:IntangibleAssetsOtherThanGoodwill2022-12-3110737001core:IntangibleAssetsOtherThanGoodwill2023-12-3110737001core:IntangibleAssetsOtherThanGoodwill2022-12-3110737001core:OtherPropertyPlantEquipment2022-12-3110737001core:OtherPropertyPlantEquipment2023-01-012023-12-3110737001core:WithinOneYear2023-12-3110737001core:WithinOneYear2022-12-3110737001core:BetweenTwoFiveYears2023-12-3110737001core:BetweenTwoFiveYears2022-12-3110737001bus:PrivateLimitedCompanyLtd2023-01-012023-12-3110737001bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3110737001bus:FRS1022023-01-012023-12-3110737001bus:Audited2023-01-012023-12-3110737001bus:Director22023-01-012023-12-3110737001bus:Director32023-01-012023-12-3110737001bus:Director42023-01-012023-12-3110737001bus:Director52023-01-012023-12-3110737001bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP