Inductosense Limited 09689612 false 2022-08-01 2023-12-31 2023-12-31 The principal activity of the company is the development and sale of wireless structural integrity sensors. Digita Accounts Production Advanced 6.30.9574.0 true true 09689612 2022-08-01 2023-12-31 09689612 2023-12-31 09689612 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2023-12-31 09689612 core:OtherReservesSubtotal 2023-12-31 09689612 core:RetainedEarningsAccumulatedLosses 2023-12-31 09689612 core:ShareCapital 2023-12-31 09689612 core:SharePremium 2023-12-31 09689612 core:CurrentFinancialInstruments 2023-12-31 09689612 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 09689612 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-12-31 09689612 core:FurnitureFittingsToolsEquipment 2023-12-31 09689612 core:MotorVehicles 2023-12-31 09689612 core:OtherPropertyPlantEquipment 2023-12-31 09689612 core:Share-basedArrangement1 2023-12-31 09689612 core:Share-basedArrangement2 2023-12-31 09689612 bus:SmallEntities 2022-08-01 2023-12-31 09689612 bus:Audited 2022-08-01 2023-12-31 09689612 bus:FullAccounts 2022-08-01 2023-12-31 09689612 bus:SmallCompaniesRegimeForAccounts 2022-08-01 2023-12-31 09689612 bus:RegisteredOffice 2022-08-01 2023-12-31 09689612 bus:Director2 2022-08-01 2023-12-31 09689612 bus:Director3 2022-08-01 2023-12-31 09689612 bus:Director4 2022-08-01 2023-12-31 09689612 bus:Director5 2022-08-01 2023-12-31 09689612 bus:Director7 2022-08-01 2023-12-31 09689612 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2022-08-01 2023-12-31 09689612 bus:PrivateLimitedCompanyLtd 2022-08-01 2023-12-31 09689612 core:ComputerSoftware 2022-08-01 2023-12-31 09689612 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-08-01 2023-12-31 09689612 core:ComputerEquipment 2022-08-01 2023-12-31 09689612 core:FurnitureFittings 2022-08-01 2023-12-31 09689612 core:FurnitureFittingsToolsEquipment 2022-08-01 2023-12-31 09689612 core:MotorVehicles 2022-08-01 2023-12-31 09689612 core:OtherPropertyPlantEquipment 2022-08-01 2023-12-31 09689612 core:PlantMachinery 2022-08-01 2023-12-31 09689612 core:Share-basedArrangement1 2022-08-01 2023-12-31 09689612 core:Share-basedArrangement2 2022-08-01 2023-12-31 09689612 1 2022-08-01 2023-12-31 09689612 countries:EnglandWales 2022-08-01 2023-12-31 09689612 2022-07-31 09689612 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-07-31 09689612 core:FurnitureFittingsToolsEquipment 2022-07-31 09689612 core:MotorVehicles 2022-07-31 09689612 core:OtherPropertyPlantEquipment 2022-07-31 09689612 core:Share-basedArrangement1 2022-07-31 09689612 core:Share-basedArrangement2 2022-07-31 09689612 2021-08-01 2022-07-31 09689612 2022-07-31 09689612 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2022-07-31 09689612 core:OtherReservesSubtotal 2022-07-31 09689612 core:RetainedEarningsAccumulatedLosses 2022-07-31 09689612 core:ShareCapital 2022-07-31 09689612 core:SharePremium 2022-07-31 09689612 core:CurrentFinancialInstruments 2022-07-31 09689612 core:CurrentFinancialInstruments core:WithinOneYear 2022-07-31 09689612 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-07-31 09689612 core:FurnitureFittingsToolsEquipment 2022-07-31 09689612 core:MotorVehicles 2022-07-31 09689612 core:OtherPropertyPlantEquipment 2022-07-31 09689612 core:Share-basedArrangement1 2022-07-31 09689612 core:Share-basedArrangement2 2022-07-31 09689612 core:Share-basedArrangement1 2021-08-01 2022-07-31 09689612 core:Share-basedArrangement2 2021-08-01 2022-07-31 09689612 core:Share-basedArrangement1 2021-07-31 09689612 core:Share-basedArrangement2 2021-07-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 09689612

Inductosense Limited

Filleted Financial Statements

for the Period from 1 August 2022 to 31 December 2023

Pages for filing with Registrar

 

Inductosense Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 14

 

Inductosense Limited

Company Information

Directors

C J G Brill

M J Butcher

A J Croxford

M C Hill

C H Zhong

Registered office

Unit 3 Kings Business Park
Feeder Road
Bristol
BS2 0TZ

Registered number

09689612

Auditors

Corrigan Accountants Limited
1st Floor
25 King Street
Bristol
BS1 4PB

 

Inductosense Limited

(Registration number: 09689612)
Balance Sheet as at 31 December 2023

Note

31 December
2023
£

31 July
2022
£

Fixed assets

 

Intangible assets

5

3,804

1,206

Tangible assets

6

38,970

18,020

 

42,774

19,226

Current assets

 

Stocks

65,654

44,455

Debtors

7

757,607

261,459

Cash at bank and in hand

 

4,672,274

1,076,194

 

5,495,535

1,382,108

Creditors: Amounts falling due within one year

8

(855,089)

(147,978)

Net current assets

 

4,640,446

1,234,130

Net assets

 

4,683,220

1,253,356

Capital and reserves

 

Called up share capital

9

42

32

Share premium reserve

9,817,777

5,047,285

Other reserves

406,884

441,756

Profit and loss account

(5,541,483)

(4,235,717)

Total equity

 

4,683,220

1,253,356

 

Inductosense Limited

(Registration number: 09689612)
Balance Sheet as at 31 December 2023 (continued)

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised for issue by the Board on 8 March 2024 and signed on its behalf by:
 

.........................................

M J Butcher

Director

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023

1

Statutory information

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

The address of its registered office is:
Unit 3 Kings Business Park
Feeder Road
Bristol
BS2 0TZ

2

Accounting policies

Summary of significant accounting policies

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 periods presented.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', as applied to smaller entities, and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are prepared in pounds sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The directors have reviewed forecasts and budgets for forthcoming periods. These forecasts take account of reasonably possible changes in trading performance and the estimated impacts of wider economic uncertainties. Based on these forecasts, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the 12 month period following the approval of these financial statements. Therefore the Board continues to adopt the going concern basis of accounting in preparing the annual financial statements.

Disclosure of long or short period

These financial statements have been prepared for the extended period from 01 August 2022 to 31 December 2023 to align the Company's year-end with that of their largest shareholder. The comparative amounts including the related notes are therefore not entirely comparable.

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

2

Accounting policies (continued)

Revenue recognition

Revenue consists of the sale of wireless structural integrity sensors and related services.

Turnover comprises the fair value of the consideration received or receivable for the provision of the sale of goods and services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns 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 has been met for each of the company's activities.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually at the point the goods are ready for dispatch.

For service contracts spanning the end of a reporting period, and where the outcome of the contract can be estimated reliably, revenue is recognised according to the percentage of completion method. The percentage completion is calculated according to the percentage of contract costs incurred by the end of the reporting period. When the outcome of a contract involving the rendering of services cannot be estimated reliably, the company recognises revenue only to the extent of the expenses recognised that are recoverable.

Government grants

Government grants are recognised, using the accrual model, at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.

Foreign currency transactions and balances

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange prevailing at the date of transaction.

All foreign currency gains and losses are recognised within administrative expenses in the Profit and Loss Account.

Tax

The tax expense or credit for the period comprises current 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.

The current corporation tax charge or credit is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

2

Accounting policies (continued)

Tangible fixed assets

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

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

Depreciation is charged so as to write off the cost of assets evenly over their estimated useful lives, as follows:

Computer equipment

25% on cost

Fixtures and fittings

25% on cost

Laboratory equipment

25% on cost

Research and development costs

Research and development costs are written off to the Profit and Loss during the year in which they are incurred.

Intangible fixed assets

Computer software costs, being licence fees, have a finite useful life and are carried at cost less accumulated amortisation.

Amortisation is provided on intangible assets so as to write off the cost over the 4 year licence period as follows:

Computer software

25% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are recognised initially at the transaction price. They are subsequently measured 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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises direct materials and, where applicable, those costs that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

2

Accounting policies (continued)

Trade creditors

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

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.

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

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

2

Accounting policies (continued)

Share based payments

The grant date fair value of share options granted to employees is recognised as an expense, with a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the options. The fair value of the options granted is measured based on company specific observable market data, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of options for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of options that do meet the related service and non-market performance conditions at the vesting date.

Employee benefits
The costs of short-term employee benefits, including the cost of any unused holiday entitlement, are recognised as an expense in the period in which the employees' services are received.

3

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of certain assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors considered to be relevant. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below:

Revenue recognition for long-term contracts
In order to measure the contract revenue to be recognised, the stage of completion of any long-term contract is assessed by management whilst taking into consideration all information available at the reporting date. In this process, significant estimates are made about future contract milestones and the estimated costs to complete the related work.

4

Staff numbers

The average number of persons employed by the company (including directors) during the 17 month period was 25 (2022, year - 23).

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

5

Intangible fixed assets

Computer Software
 £

Cost

At 1 August 2022

5,931

Additions

4,614

At 31 December 2023

10,545

Amortisation

At 1 August 2022

4,725

Amortisation charge

2,016

At 31 December 2023

6,741

Carrying amount

At 31 December 2023

3,804

At 31 July 2022

1,206

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

6

Tangible fixed assets

Fixtures and fittings
 £

Computer equipment
 £

Laboratory equipment
 £

Total
£

Cost

At 1 August 2022

21,565

24,224

19,122

64,911

Additions

1,736

24,160

12,687

38,583

At 31 December 2023

23,301

48,384

31,809

103,494

Depreciation

At 1 August 2022

14,960

17,414

14,517

46,891

Charge for the year

6,115

8,359

3,159

17,633

At 31 December 2023

21,075

25,773

17,676

64,524

Carrying amount

At 31 December 2023

2,226

22,611

14,133

38,970

At 31 July 2022

6,605

6,810

4,605

18,020

7

Debtors: amounts falling due within one year

31 December
2023
£

31 July
2022
£

Trade debtors

654,940

243,493

Other debtors

21,248

12,098

Prepayments

81,419

5,868

757,607

261,459

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

8

Creditors

31 December
2023
£

31 July
2022
£

Trade creditors

163,995

85,410

Taxation and social security

40,414

23,880

Other creditors

27,102

3,529

Accruals and deferred income

623,578

35,159

855,089

147,978

9

Share capital

Allotted, called up and fully paid shares

 

31 December
2023

31 July
2022

 

No.

£

No.

£

Ordinary shares of £0.0001 each

418,195

41.82

319,370

31.94

         

New shares allotted

During the period 98,825 Ordinary shares having an aggregate nominal value of £9.88 were allotted for an aggregate consideration of £4,770,502.

10

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

31 December
2023
£

31 July
2022
£

Total

21,292

76,000

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

11

Share-based payments

EMI Scheme

Share options have been granted to certain employees under an EMI share options scheme.

Of the 34,196 options brought forward, the 8,600 options granted to directors are exercisable based on vesting conditions relating to the financial performance of the business and the completion of equity investment. Of the remaining options brought forward, 2,000 are exercisable at specified dates spread over the vesting period of 2 years provided certain criteria are met regarding continued service. The remaining options vest on an exit event which is deemed to be a sale or flotation of the company, and provided certain criteria are met regarding continued service. Of these options, 2,000 expire on 17 August 2026, 7,500 expire on 12 October 2028, 13,226 expire on 27 January 2030 and the remaining 2,870 expire on 31 July 2032.

The movements in the number of share options during the period were as follows:

1 August 2022
to 31
December
2023
Number

Year ended
31 July
2022
Number

Outstanding, start of period

34,196

33,326

Granted during the period

-

2,870

Expired during the period

-

(2,000)

Outstanding, end of period

34,196

34,196

Exercisable, end of period

31,326

10,600

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

11

Share-based payments (continued)

The movements in the weighted average exercise price of share options during the period were as follows:

1 August 2022
to 31
December
2023
£

Year ended
31 July
2022
£

Outstanding, start of period

10.56

9.75

Granted during the period

-

16.39

Expired during the period

-

5.49

Outstanding, end of period

10.56

10.56

Exercisable, end of period

10.02

1.88

Unapproved scheme

Share options have been granted to certain members of management under an unapproved share option scheme. Where options do not vest on the grant date, the options are exercisable over a vesting period of 5 years provided certain criteria are met regarding continued service.

The movements in the number of share options during the period were as follows:

1 August 2022
to 31
December 2023
Number

Year ended
31 July
2022
Number

Outstanding, start of period

9,474

9,474

Exercised during the period

(1,850)

-

Outstanding, end of period

7,624

9,474

Exercisable, end of period

7,624

8,474

 

Inductosense Limited

Notes to the Financial Statements for the Period from 1 August 2022 to 31 December 2023 (continued)

11

Share-based payments (continued)

The movements in the weighted average exercise price of share options during the period were as follows:

1 August 2022
to 31
December 2023
£

Year ended
31 July
2022
£

Outstanding, start of period

5.99

5.99

Exercised during the period

6.31

-

Outstanding, end of period

5.91

5.99

Exercisable, end of period

5.91

6.04

12

Audit report

As the profit and loss account 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 Independent Auditor's Report was unqualified.
The Senior Statutory Auditor who signed the audit report 8 March 2024 was Stuart Crisp BSc FCA.
• The auditor was Corrigan Accountants Limited.