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REGISTERED NUMBER: 05751473 (England and Wales)















Financial Statements for the Year Ended 31 December 2023

for

Sky Medical Technology Limited

Sky Medical Technology Limited (Registered number: 05751473)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Sky Medical Technology Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: B J Ross
R E Long
E T Rudd
K A Powell
C Bouckley
R J Petersen
G Baran
G Slemko





SECRETARY: D G Hughes BA FCA





REGISTERED OFFICE: Daresbury Science & Innovation Campus
Keckwick Lane
Daresbury
Cheshire
WA4 4FS





REGISTERED NUMBER: 05751473 (England and Wales)





AUDITORS: Myersons
Statutory Auditors
Chartered Accountants
32 Derby Street
Ormskirk
Lancashire
L39 2BY

Sky Medical Technology Limited (Registered number: 05751473)

Balance Sheet
31 December 2023

31.12.23 31.12.22
as restated
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 - -
Tangible assets 5 135,215 113,709
Investments 6 100 100
135,315 113,809

CURRENT ASSETS
Debtors 7 8,644,997 9,631,189
Cash at bank and in hand 781,358 104,119
9,426,355 9,735,308
CREDITORS
Amounts falling due within one year 8 1,737,890 709,371
NET CURRENT ASSETS 7,688,465 9,025,937
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,823,780

9,139,746

CREDITORS
Amounts falling due after more than one
year

9

8,671,431

14,853,643
NET LIABILITIES (847,651 ) (5,713,897 )

CAPITAL AND RESERVES
Called up share capital 13 52,923 39,673
Share premium 44,156,761 34,014,701
Other reserves 135,000 -
Share option reserve 1,597,844 1,355,505
Retained earnings (46,790,179 ) (41,123,776 )
SHAREHOLDERS' FUNDS (847,651 ) (5,713,897 )

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





B J Ross - Director


Sky Medical Technology Limited (Registered number: 05751473)

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

1. STATUTORY INFORMATION

Sky Medical Technology Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements
The financial statements contain information about Sky Medical Technology Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Patents and licences
Patents and licences capitalised in the first year of trade are being amortised over the expected useful life of 5 years.

Patent costs incurred thereafter have been debited to the profit and loss in the period they are incurred.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 20% on cost
Plant and machinery - 20% on cost and at varying rates on cost
Fixtures and fittings - 15% on reducing balance
Computer equipment - 33% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

The Convertible Loan Notes are classified as 'Other Financial Instruments' and therefore are measured at fair value with any annual adjustments being released to the profit & loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Sky Medical Technology Limited (Registered number: 05751473)

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

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Research and development
Expenditure on research and development is debited to the profit and loss account in the year in which it is incurred.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Share premium
The cost of raising finance is netted off against the share premium account.

Share based payments
Share options granted to directors and employees are provided in the financial statements at their fair value at the grant date spread over their vesting period. As per the transitional rules permitted by FRS102 Section 1A, the company has applied an exemption not to provide for any share options granted prior to 1 January 2016.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 33 (2022 - 32 ) .

4. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1 January 2023
and 31 December 2023 5,300
AMORTISATION
At 1 January 2023
and 31 December 2023 5,300
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

Sky Medical Technology Limited (Registered number: 05751473)

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

5. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 86,859 457,592 87,012 258,772 890,235
Additions 3,215 87,261 - 17,418 107,894
Disposals - - - (640 ) (640 )
At 31 December 2023 90,074 544,853 87,012 275,550 997,489
DEPRECIATION
At 1 January 2023 86,859 384,426 68,722 236,519 776,526
Charge for year 404 69,075 2,730 14,179 86,388
Eliminated on disposal - - - (640 ) (640 )
At 31 December 2023 87,263 453,501 71,452 250,058 862,274
NET BOOK VALUE
At 31 December 2023 2,811 91,352 15,560 25,492 135,215
At 31 December 2022 - 73,166 18,290 22,253 113,709

6. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 100
NET BOOK VALUE
At 31 December 2023 100
At 31 December 2022 100

7. DEBTORS
31.12.23 31.12.22
as restated
£    £   
Amounts falling due within one year:
Amounts owed by group undertakings - 285,904
Amounts owed by participating interests - 161
Tax 650,000 1,200,000
VAT 1,411 10,912
Prepayments and accrued income 171,591 164,535
823,002 1,661,512

Sky Medical Technology Limited (Registered number: 05751473)

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

7. DEBTORS - continued
31.12.23 31.12.22
as restated
£    £   
Amounts falling due after more than one year:
Amounts owed by group undertakings 7,821,995 7,969,677

Aggregate amounts 8,644,997 9,631,189

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
as restated
£    £   
Other loans 1,115,959 32,438
Finance leases (see note 10) - 11,715
Trade creditors 140,276 273,758
Social security and other taxes 87,433 87,937
Other creditors 38,460 30,584
Accruals and deferred income 355,762 272,939
1,737,890 709,371

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
as restated
£    £   
Convertible loan 8,671,431 14,853,643

10. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases
31.12.23 31.12.22
as restated
£    £   
Net obligations repayable:
Within one year - 11,715

Non-cancellable operating leases
31.12.23 31.12.22
as restated
£    £   
Within one year 51,388 84,019
Between one and five years - 51,388
51,388 135,407

Sky Medical Technology Limited (Registered number: 05751473)

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

11. SECURED DEBTS

An initial rent deposit paid by Sky Medical Technology Ltd to J P Morgan Trustee and Depositary Company of £4,235 has been secured by way of a mortgage charge created 31st August 2010 where in an event of default under the lease agreement this and all other monies due would be paid.

12. FINANCIAL INSTRUMENTS

Included in creditors: amounts falling due after more than one year, are 8% Convertible Loan Notes executed by the company in 2019, 2021, 2022 & 2023. All outstanding Loan Notes which have not previously been converted or redeemed shall be redeemed on 31 March 2026.

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: as restated
£    £   
7,740,818 Ordinary £0.00 1 7,741 7,741
45,002,951 A' Ordinary £0.00 1 45,182 31,932
52,923 39,673

14. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Nicola Price ACA FCCA (Senior Statutory Auditor)
for and on behalf of Myersons

15. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

16. CONTROLLING PARTY

In the opinion of the members, there is no overall controlling party as defined by Financial Reporting Standard 102.

17. GOING CONCERN

The company's financial statements are showing negative reserves at the balance sheet date. The assessment of going concern is reliant on the company's access to outside investment and funding, which has been successfully accessed on a consistent basis to support the company's extensive Research and Development activities and commercial expansion. In line with most Medical Technology and Life Sciences companies, there has been a large, planned expenditure on R&D to develop the products and provide clinical evidence to support efficacy. These costs have been expensed to the Profit & Loss account as incurred, which has contributed to the losses, but in reality, this expenditure has created a valuable intangible asset for the Group. It is a requirement of Accounting Standard FRS 102, that these costs are written off when incurred (except in a few very narrow circumstances).

In addition, the negative reserves are due to the majority of the recent outside investment being in the form of convertible loan notes rather than issued share capital at this stage. The reserves have improved during the year due to £5.8m of the loan notes plus interest converting to equity. At the date of the audit report the directors are confident that the company will have sufficient funds and continued backing from existing investors for at least the next twelve months and beyond and therefore assess the company to be a going concern.

Sky Medical Technology Limited (Registered number: 05751473)

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

18. DEBTOR RECOVERABILITY

Included in debtors per the balance sheet and as disclosed in note 9 of the accounts is £7.8m (£8.3m 2022) of amounts owed by group undertakings. The recoverability of this debt is reliant on the success of the subsidiaries and the group as a whole. It is therefore considered to be a long term debt. As at 31 December 2023 the group undertakings do not have the ability to repay this debt.