Zetica Limited 04079723 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is the provision of risk assessments and above- and below-ground mapping services across a wide spectrum of industries. 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Registration number: 04079723

Zetica Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Zetica Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 28

 

Zetica Limited

Company Information

Directors

A L Eriksen

A S Eriksen

Registered office

Zetica House
Southfield Road
Eynsham
Witney
OX29 4JB

Solicitors

Darby's Solicitors LLP
52 New Inn Hall Street
Oxford
OX1 2DN

Auditors

Just Audit & Assurance Ltd
Registered Auditor
37 Market Square
Witney
Oxon
OX28 6RE

 

Zetica Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is the provision of risk assessments and above- and below-ground mapping services across a wide spectrum of industries.

As one of the UKs leaders in engineering and environmental geophysics, Zetica has a reputation for objective advice, novel problem solving, consistently high-quality surveys and easy to understand reporting.

Geophysical methods of surveying are used to monitor below-ground infrastructure for road and rail network maintenance planning, quality control of maintenance and measuring the impact of climate change. Zetica characterise foundation materials for design, map buried services, and de-risk development of brownfield as well as greenfield sites. The UXO risk mitigation services include desk studies, surveys, and disposal. The company develops instrumentation, integrated scanning platforms and software.

With extensive global experience, Zetica operates wherever an informed understanding of the subsurface supports development, asset maintenance, engineering improvement and monitoring work.

Zetica is committed to building a truly diverse and inclusive workforce. Its aim is to attract talented people from a wide range of backgrounds, expertise, and perspectives.

Fair review of the business

The 2023 financial year experienced a stable sales pattern for most of the year whilst employee numbers continued to grow. The year concluded with several projects coming off at once bolstering the revenue levels achieved.

Zetica remains committed to enhancing its working processes and management patterns, building on recent developments. The company continues to invest in its workforce, both in terms of employee numbers and associated costs, with the aim of attracting and retaining industry talent.

Zetica’s continued dedication to development programs across its various departments is set to drive commercial growth and contribute to employee retention, recruitment, and operational efficiency, both on-site and in the office.

Zetica’s management are satisfied with the company’s performance for the period, although expectations for the 2024 year are tempered.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£ 000s

10,362

9,111

Profit before tax

£ 000s

1,117

1,198

Employee numbers

107

101

 

Zetica Limited

Strategic Report for the Year Ended 31 December 2023

Principal risks and uncertainties

Our expectations for 2024 are tempered by global economic pressures potentially affecting growth prospects, coupled with an increased time being invested in securing such projects. We remain confident but forecast a lower output than 2023.

Foreign currency exposure is considered to be a manageable risk with exchanges of currency made as soon as is reasonable. Where projects allow balances are held in domestic currencies to provide flexibility on the ground.

Approved and authorised by the Board on 8 August 2024 and signed on its behalf by:
 

.........................................
A S Eriksen
Director

 

Zetica Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

A L Eriksen

A S Eriksen

Financial instruments

Objectives and policies

The Board manages financial and treasury risk through active working capital management. Monitoring of cash flow and currency exposure is undertaken on a monthly basis.

Price risk, credit risk, liquidity risk and cash flow risk

Risks and uncertainties are inherent in all businesses and Zetica is no exception. Risk management is seen as an important element of internal control and is used to mitigate the exposure to such risks. Processes to manage the impact on the business of risks are embedded in our operations and the Directors and other senior management actively monitor these processes, and the actions which arise, to ensure risks are effectively managed.

Environmental matters

Health and safety, employer’s and public liability risks are monitored by way of regular updates to the Board.

Employee involvement

The directors meet staff on a regular basis to keep them appraised of important issues. Zetica runs two incentive schemes. Geophysical survey teams are incentivised for days spent out of the office and all eligible employees can share in the Zetica Profit Share Scheme.

Research and development

Zetica continues to utilise its technical expertise to advance its offering and remain at the forefront of technology in the field of geophysical surveys. Expenditure on research and development increased over 2020 with continued focus of spend against multisensor data capture, new sensor systems and data processing.

Going concern

The directors have prepared cash flow statements that reflect the forecast revenues and costs. It is envisaged by the directors that existing cash resources together with these forecast revenue streams will provide adequate funds for the foreseeable future.

In the event that the firm is unable to achieve its forecast revenues, the directors have a plan in place that will allow the business to continue to exist within its current funding arrangements. As a result, the directors have formed a view that adequate funds will be available for at least the next year following approval of these financial statements. The financial statements have therefore been prepared on a going concern basis.

The financial statements do not contain any adjustments which would result if the firm does not generate sufficient revenue and free cash flows from its trading activities or if any future fund raising exercise was not successful

 

Zetica Limited

Directors' Report for the Year Ended 31 December 2023

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Just Audit & Assurance Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.


 

Approved and authorised by the Board on 8 August 2024 and signed on its behalf by:
 

.........................................
A S Eriksen
Director

 

Zetica Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Zetica Limited

Independent Auditor's Report to the Members of Zetica Limited

Opinion

We have audited the financial statements of Zetica Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

Zetica Limited

Independent Auditor's Report to the Members of Zetica Limited

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Zetica Limited

Independent Auditor's Report to the Members of Zetica Limited

Our assessment focused on key laws and regulations the company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation.

We are not responsible for preventing irregularities. Our approach to detect irregularities included, but was not limited to, the following:

• obtaining an understanding of the entity’s policies and procedures and how the entity has complied with these, through discussions and sample testing of controls;
• obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;
• an understanding of the entity’s risk assessment process, including the risk of fraud;
• designing our audit procedures to respond to our risk assessment; and
• performing audit work over the risk of management override of controls including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing estimates for bias.

Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Zetica Limited

Independent Auditor's Report to the Members of Zetica Limited

......................................
Martin Wright (Senior Statutory Auditor)
For and on behalf of Just Audit & Assurance Ltd, Statutory Auditor

37 Market Square
Witney
Oxon
OX28 6RE

8 August 2024

 

Zetica Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

10,361,690

9,111,189

Cost of sales

 

(4,626,088)

(3,937,626)

Gross profit

 

5,735,602

5,173,563

Administrative expenses

 

(4,661,979)

(4,108,474)

Other operating income

4

23,482

16,394

Operating profit

5

1,097,105

1,081,483

Other interest receivable and similar income

6

83,178

7,010

Interest payable and similar expenses

7

(63,438)

109,694

   

19,740

116,704

Profit before tax

 

1,116,845

1,198,187

Tax on profit

11

(235,064)

(194,105)

Profit for the financial year

 

881,781

1,004,082

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Zetica Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

881,781

1,004,082

Total comprehensive income for the year

881,781

1,004,082

 

Zetica Limited

(Registration number: 04079723)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

4,012,991

3,855,546

Current assets

 

Debtors

14

3,237,601

2,057,161

Cash at bank and in hand

 

3,787,225

4,179,209

 

7,024,826

6,236,370

Creditors: Amounts falling due within one year

16

(1,225,376)

(961,575)

Net current assets

 

5,799,450

5,274,795

Total assets less current liabilities

 

9,812,441

9,130,341

Creditors: Amounts falling due after more than one year

16

(269,066)

(374,966)

Provisions for liabilities

17

(224,483)

(168,264)

Net assets

 

9,318,892

8,587,111

Capital and reserves

 

Called up share capital

500

500

Retained earnings

9,318,392

8,586,611

Shareholders' funds

 

9,318,892

8,587,111

Approved and authorised by the Board on 8 August 2024 and signed on its behalf by:
 

.........................................
A S Eriksen
Director

 

Zetica Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

500

8,586,611

8,587,111

Profit for the year

-

881,781

881,781

Dividends

-

(150,000)

(150,000)

At 31 December 2023

500

9,318,392

9,318,892



 

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

500

7,582,529

7,583,029

Profit for the year

-

1,004,082

1,004,082

At 31 December 2022

500

8,586,611

8,587,111

 

Zetica Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

881,781

1,004,082

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

424,974

470,276

Profit on disposal of tangible assets

(354)

-

Finance income

6

(83,178)

(7,010)

Finance costs

7

12,626

19,661

Income tax expense

11

235,064

194,105

 

1,470,913

1,681,114

Working capital adjustments

 

(Increase)/decrease in trade and other debtors

14

(1,180,440)

144,407

Increase/(decrease) in trade and other creditors

16

235,835

(417,215)

Cash generated from operations

 

526,308

1,408,306

Income taxes paid

11

(153,952)

(148,654)

Net cash flow from operating activities

 

372,356

1,259,652

Cash flows from investing activities

 

Interest received

6

83,178

7,010

Acquisitions of tangible assets

(582,481)

(947,837)

Proceeds from sale of tangible assets

 

416

-

Net cash flows from investing activities

 

(498,887)

(940,827)

Cash flows from financing activities

 

Interest paid

7

(12,626)

(19,661)

Repayment of bank borrowing

 

(102,827)

(293,442)

Dividends paid

22

(150,000)

-

Net cash flows from financing activities

 

(265,453)

(313,103)

Net (decrease)/increase in cash and cash equivalents

 

(391,984)

5,722

Cash and cash equivalents at 1 January

 

4,179,209

4,173,487

Cash and cash equivalents at 31 December

 

3,787,225

4,179,209

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Zetica House
Southfield Road
Eynsham
Witney
OX29 4JB

These financial statements were authorised for issue by the Board on 8 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

25% - 33.33% reducing balance

Motor vehicles

25% reducing balance

Field equipment

33.33% reducing balance

Freehold Buildings

2% straightline

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

a maximum of 5 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Rendering of services

10,361,690

9,111,189

The analysis of the company's turnover for the year by class of business is as follows:

2023
 £

2022
 £

Rail

5,353,194

4,483,258

Geo

5,008,496

4,627,931

10,361,690

9,111,189

The analysis of the company's turnover for the year by market is as follows:

2023
 £

2022
 £

UK

5,002,058

4,685,537

Europe

229,532

58,182

Rest of world

5,130,100

4,367,470

10,361,690

9,111,189

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
 £

2022
 £

Miscellaneous other operating income

23,482

16,394

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

5

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

424,974

470,276

Research and development cost

918,257

857,548

Operating lease expense - plant and machinery

34,531

31,847

Profit on disposal of property, plant and equipment

(354)

-

6

Other interest receivable and similar income

2023
 £

2022
 £

Interest income on bank deposits

83,178

7,010

7

Interest payable and similar expenses

2023
 £

2022
 £

Interest on bank overdrafts and borrowings

12,626

19,661

Foreign exchange gains/losses

50,812

(129,355)

63,438

(109,694)

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

3,626,329

3,014,129

Social security costs

355,681

312,925

Other short-term employee benefits

37,754

35,481

Pension costs, defined contribution scheme

201,298

165,516

Other employee expense

123,232

88,196

4,344,294

3,616,247

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Management

7

7

Sales, marketing and distribution

4

3

Administration and support

13

11

Production

83

80

107

101

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

157,422

156,875

Contributions paid to money purchase schemes

42,000

42,000

Total directors' benefits in kind

5,824

4,140

205,246

203,015

Benefits in kind provided to the directors include the provision of company vehicle, medical insurance and accountancy fees.

10

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

9,600

9,000


 

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Taxation

Tax charged/(credited) in the income statement

2023
 £

2022
 £

Current taxation

UK corporation tax

178,845

153,952

UK corporation tax adjustment to prior periods

-

(387)

178,845

153,565

Deferred taxation

Arising from origination and reversal of timing differences

56,219

40,540

Tax expense in the income statement

235,064

194,105

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,116,845

1,198,187

Corporation tax at standard rate

279,211

227,656

Effect of expense not deductible in determining taxable profit (tax loss)

18,319

6,787

Increase from effect of tax incentives

1,084

44,526

Decrease in UK and foreign current tax from adjustment for prior periods

-

(387)

Tax decrease from effect of adjustment in research and development tax credit

(52,300)

(84,477)

Tax decrease from changes in tax provisions due to legislation

(11,250)

-

Total tax charge

235,064

194,105

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Origination and reversal of timing differences

-

224,483

-

224,483

2022

Asset
£

Liability
£

Origination and reversal of timing differences

-

168,264

-

168,264

12

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

96,011

96,011

At 31 December 2023

96,011

96,011

Amortisation

At 1 January 2023

96,011

96,011

At 31 December 2023

96,011

96,011

Carrying amount

At 31 December 2023

-

-

The aggregate amount of research and development expenditure recognised as an expense during the period is £918,257 (2022 - £857,548).
 

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2023

2,977,055

1,299,838

53,791

3,143,254

7,473,938

Additions

-

131,812

20,089

430,580

582,481

Disposals

-

-

-

(1,646)

(1,646)

At 31 December 2023

2,977,055

1,431,650

73,880

3,572,188

8,054,773

Depreciation

At 1 January 2023

109,530

1,009,073

50,732

2,449,057

3,618,392

Charge for the year

26,869

96,111

4,868

297,126

424,974

Eliminated on disposal

-

-

-

(1,584)

(1,584)

At 31 December 2023

136,399

1,105,184

55,600

2,744,599

4,041,782

Carrying amount

At 31 December 2023

2,840,656

326,466

18,280

827,589

4,012,991

At 31 December 2022

2,867,525

290,765

3,059

694,197

3,855,546

Included within the net book value of land and buildings above is £2,840,656 (2022 - £2,867,525) in respect of freehold land and buildings.
 

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

14

Debtors

Current

2023
£

2022
£

Trade debtors

2,780,173

1,645,907

Other debtors

89,709

288,990

Prepayments

367,719

122,264

 

3,237,601

2,057,161

15

Cash and cash equivalents

2023
 £

2022
 £

Cash on hand

1,083

305

Cash at bank

687,348

1,227,731

Short-term deposits

3,065,342

2,924,150

Other cash and cash equivalents

33,452

27,023

3,787,225

4,179,209

16

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

20

105,656

102,583

Trade creditors

 

326,351

265,101

Social security and other taxes

 

212,358

90,791

Outstanding defined contribution pension costs

 

7,796

(234)

Other payables

 

14,849

1,128

Accrued expenses

 

379,520

348,253

Income tax liability

11

178,846

153,953

 

1,225,376

961,575

Due after one year

 

Loans and borrowings

20

269,066

374,966

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

17

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 January 2023

168,264

168,264

Increase (decrease) in existing provisions

56,219

56,219

At 31 December 2023

224,483

224,483

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £201,298 (2022 - £165,516).

Contributions totalling £7,796 (2022 - £(234)) were payable to the scheme at the end of the year and are included in creditors.

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £0.50 each

1,000

500

1,000

500

         

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
There are no restrictions on the distribution of dividends and the repayment of capital.

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

20

Loans and borrowings

2023
 £

2022
 £

Non-current loans and borrowings

Bank borrowings

269,066

374,966

2023
 £

2022
 £

Current loans and borrowings

Bank borrowings

105,656

102,583


 

Mortgage account

2023
£

2022
£

Current borrowing

105,656

102,583

Within 2-5 years

269,066

374,966

374,722

477,549


 

Bank borrowings

The mortgage account is denominated in £ with a nominal interest rate of 2.92%, and the final instalment is due on 30 April 2027. The carrying amount at year end is £Nil (2022 - £477,549).

Security is by way of a fixed charge over the freehold property.

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

16,788

50,547

Later than one year and not later than five years

17,496

19,445

34,284

69,992

The amount of non-cancellable operating lease payments recognised as an expense during the year was £37,457 (2022 - £49,773).

 

Zetica Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

22

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £150.00 (2022 - £Nil) per each Ordinary shares

 

150,000

 

-

         

23

Related party transactions

Transactions with directors

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

A L Eriksen

Director's loan account

29,944

84,147

(75,000)

39,091

         

A S Eriksen

Director's loan account

28,292

88,887

(75,000)

42,179

         



 

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

At 31 December 2022
£

A L Eriksen

Director's loan account

-

29,944

-

29,944

         
       

A S Eriksen

Director's loan account

(8,180)

37,423

(951)

28,292

         
       

 

The loans to directors are unsecured, interest free and repayable upon demand; the balances are shown in other debtors above.

Summary of transactions with other related parties

Zetica Rail Limited
(A S Eriksen and A L Eriksen are common directors and A S Eriksen is common owner.)

 During the year, Zetica Limited paid invoices totalling £NIL (2022 - £NIL) for Zetica Rail Limited. The amount due at the year end from Zetica Rail Limited was £235 (2022 - £235).