REGISTERED NUMBER: |
KATRICK TECHNOLOGIES LIMITED |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 |
REGISTERED NUMBER: |
KATRICK TECHNOLOGIES LIMITED |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 |
KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
Page |
Balance Sheet | 1 |
Notes to the Financial Statements | 3 |
KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030) |
BALANCE SHEET |
30 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
7 |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Retained earnings | ( |
) | ( |
) |
( |
) |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030) |
BALANCE SHEET - continued |
30 MARCH 2024 |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
1. | STATUTORY INFORMATION |
Katrick Technologies Limited is a private company, limited by shares, registered in Scotland. The company's registered office is The Garment Factory, Suite 8, 10 Montrose Street, Glasgow, Lanarkshire, G1 1RE. |
The presentation currency of the financial statements is Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There have been no material departures from that standard. The financial statements have been prepared under the historical cost convention. |
Going concern |
In the company's financial year to 30th March 2024, we successfully completed our Alpha testing programmes in partnership with the MTC, University of Strathclyde, and other technology development partners. The Alpha programme has provided verification of the technology to progress into the Beta programme testing and pilot installations, enabling the company to achieve technology readiness level (TRL) 7. The company has already identified the specialised industry partners to build the Beta pilot units for installation for live environments in 2025. Katrick Technologies are already engaging with global commercial partners to progress technology and commercial discussions. This is a key milestone for the company as it progresses towards commercialising the business and technology. Katrick Technologies continue to be supported by leading wind experts and academics at Herriot Watt University in Edinburgh. The data captured and collected over the last 12 months has been analysed and verified by the academics at Heriot Watt University with positive results being demonstrated. The results of the wind mapping studies in the targeted market sectors have verified the selection of entry markets yielding better than anticipated results. This has increased interest from end-user markets across global geographies. The wind capture data analysis is unique for turbulent wind below 10m, adding an incredible amount of value to Katrick's Wind Panel technology. The above activity supports the progress of the company's products towards commercialisation and the future generation of revenue and profits. |
The financial statements have been prepared on a going concern basis. The validity of this, however, is dependent on continued support from investors and creditors until the company reaches a point where sufficient revenue and profits are being made. If support was to be withdrawn, adjustments may have to be made to reduce the value of the assets to their recoverable amount and to provide for any further liabilities that may arise. The company has significant pre-tax losses of over £2 million in the current year, however this is expected in the development phase of its products. The company has signed a Memorandum of Understanding with an institutional investor on the 3rd May 2024. The terms of the funding are broken down into 3 transactions: 1. Equity of £2.5 million; 2. Equity warrant of £1 million; 3. A credit facility of £7.5 million which has a convertible loan option. The management team are progressing towards completing this investment. The company has raised funding of over £852,000 in the financial year to 30th March 2024 and have raised a further £419,000 following the year end. The company is submitting an R&D tax credit claim of over £280,000 for the year to 30th March 2024. This follows an R&D tax credit receipt of over £530,000 for the 2023 financial year. |
The directors believe the long term cashflow requirements will be secured following the completion of the institutional investor's funding into the business. Short-term cashflow will be supported through further fundraising to bridge until the completion of the institutional investor's transaction. The directors expect he above fundraising activity to be successful and therefore believe it is appropriate to prepare the financial statements on a going concern basis. |
Judgements |
The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The directors consider there are no such significant judgements. |
KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and machinery etc | - |
Tangible fixed assets are included at cost less accumulated depreciation and impairment losses. |
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like development costs and plant and machinery, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and loans from related parties. |
Debt instruments like other accounts payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade and other debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. |
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
Taxation |
Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense. |
Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. |
Operating lease commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Provisions |
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
£ |
COST |
At 31 March 2023 |
Disposals | ( |
) |
At 30 March 2024 |
DEPRECIATION |
At 31 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30 March 2024 |
NET BOOK VALUE |
At 30 March 2024 |
At 30 March 2023 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2024 |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Taxation and social security |
Other creditors |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans |
8. | OTHER FINANCIAL COMMITMENTS |
The company has future operating lease commitments of £37,538 (2023: £13,821). |
9. | RELATED PARTY DISCLOSURES |
At the balance sheet date, the amount due to the director was £64,051 (2023: £92,651). This amount is interest free, unsecured and repayable on demand. |