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REGISTERED NUMBER: SC551030 (Scotland)















KATRICK TECHNOLOGIES LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 APRIL 2022 TO 30 MARCH 2023






KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 APRIL 2022 TO 30 MARCH 2023




Page

Balance Sheet 1

Notes to the Financial Statements 3


KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030)

BALANCE SHEET
30 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 30,884 45,425

CURRENT ASSETS
Debtors 5 604,662 497,427
Cash at bank 419,114 1,940,197
1,023,776 2,437,624
CREDITORS
Amounts falling due within one year 6 520,694 357,271
NET CURRENT ASSETS 503,082 2,080,353
TOTAL ASSETS LESS CURRENT
LIABILITIES

533,966

2,125,778

CREDITORS
Amounts falling due after more than one
year

7

13,965

19,345
NET ASSETS 520,001 2,106,433

CAPITAL AND RESERVES
Called up share capital 13 13
Share premium 6,103,747 4,913,748
Retained earnings (5,583,759 ) (2,807,328 )
520,001 2,106,433

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 March 2023.

The members have not required the company to obtain an audit of its financial statements for the period ended 30 March 2023 in accordance with Section 476 of the Companies Act 2006.

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 2023


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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 9 August 2024 and were signed on its behalf by:





V Madlani - Director


KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 APRIL 2022 TO 30 MARCH 2023

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 7, 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
Since the year end, 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 Heriot 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 £3 million in the year 31 March 2023, 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 since that 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 the 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 PERIOD 1 APRIL 2022 TO 30 MARCH 2023

2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets represent direct expenditure on product and development and are expensed in the early stages of development. Once a certain more advanced stage is reached then costs may be capitalised. After initial capitalisation, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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 machinery etc - 50% on cost and 33.3% on cost

Tangible fixed assets are included at cost less accumulated depreciation and accumulated impairment losses.

Impairment of non-financial assets
At each reporting date non-financial assets not carried at fair value, like 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 and bank loans from related parties.

Debt instruments like loans and other accounts receivable and 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.


KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 30 MARCH 2023

2. ACCOUNTING POLICIES - continued
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.

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.

Government grants
Government grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the period was 20 (2022 - 19 ) .

KATRICK TECHNOLOGIES LIMITED (REGISTERED NUMBER: SC551030)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 30 MARCH 2023

4. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 April 2022 64,421
Additions 12,850
Disposals (2,055 )
At 30 March 2023 75,216
DEPRECIATION
At 1 April 2022 18,996
Charge for period 25,772
Eliminated on disposal (436 )
At 30 March 2023 44,332
NET BOOK VALUE
At 30 March 2023 30,884
At 31 March 2022 45,425

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other debtors 604,662 497,427

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 5,958 5,804
Trade creditors 153,815 111,123
Taxation and social security 39,117 43,586
Other creditors 321,804 196,758
520,694 357,271

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans 13,965 19,345

8. OTHER FINANCIAL COMMITMENTS

The company has future operating lease commitments of £13,821 (2022: £14,400).

9. RELATED PARTY DISCLOSURES

At the balance sheet date, amounts due to the directors was £92,651 (2022: £73,587). This amount is interest free, unsecured and repayable on demand.