Company registration number 10051398 (England and Wales)
COLORIFIX LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
COLORIFIX LIMITED
COMPANY INFORMATION
Directors
Dr James Ajioka
Mr Wolfgang Hafenmayer
Mr Per Aniansson
Dr Orr Yarkoni
Ms Anna Lind
(Appointed 7 August 2023)
Mr David Yarkoni
(Appointed 7 May 2024)
Mr Christopher Hunter
(Appointed 4 June 2024)
Company number
10051398
Registered office
Innovation Centre Colney Lane
Colney
Norwich
NR4 7GJ
Auditor
SRG (Audit) LLP
10 Bolt Court
3rd Floor
London
EC4A 3DA
COLORIFIX LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group and company balance sheets
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Notes to the financial statements
15 - 29
COLORIFIX LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the Business including principal risks and uncertainties

Colorifix Limited was launched in 2016 and set primarily as a biotechnology company to develop a biological process to produce, deposit and fix coloured pigments onto textiles made by genetically engineered microorganisms.

 

Colorifix aim to reduce water use, chemical use and energy consumption. These metrics are also significant for Colorifix’s customers as this is where they will save money and make products that meet the rising demand for increased sustainability.

 

The upfront investment on R&D is high and with it comes a risk of R&D technical attrition. However, our approach is design, build, test and learn with automated pathway design and assembly. We focus on target colours, target materials and overall yield optimisation.

 

At Colorifix, we understand that the textile dyeing industry is massive and steeped in historical methods and practices. Tradition and innovation are both highly valued. We consider the environmental impact but also take in consideration social and economic risk. Integration with current dye house machinery and being cost competitive are important considerations to consider.

 

To this end, we have developed a machine-operator friendly and cost-competitive bioreactor with some modifications to improve yield and maintain sterility in a very non-sterile environment. They are built as “plug-and-play” units that can be easily hooked up with steam, water, electricity and natural gas found in all dye houses. This has started in Europe using the smaller 300L model.

 

Although our direct customers are manufacturers, it is widely acknowledged that fashion brands have the most significant influence in driving the adoption of innovative technologies within the supply chain through their demand. Therefore, we have an opportunity to diversify our customer portfolio and from that manage risk by engaging with a target audience that ranges from textile mills and dye houses to fashion brands and policy makers.

 

We have set up a hybrid revenue model – part licensing and part product, which is currently split across three revenue streams. Two direct product revenue streams where our customer is the dye house: a bioreactor sale and recurring consumables sale (media) - like the printer/cartridge model. Our third revenue stream comes from the licensing of our IP to the mill which then sells the fabric on. Essentially, we form a partnership with mills to supply the product and production assistance and take a % of revenue from products sold with the technology.

 

Our strategy is built around a) impact, b) regulatory requirements, c) IP considerations and d) scalability. By having roughly half the revenue come through the mill partnership, we can keep the cost of dyeing with the technology by the dye house low and signal to the market strong unit economics.

 

Naturally regulatory risk for our business is high, but we strive to overcome that in various ways. We have a testing regime which includes lightfastness, wash fastness, wet/dry rubbing and perspiration for quality purposes, ensuring products we release are capable of replacing existing products on quality - if a product is greener but less durable, it is often less sustainable. Beyond this, we test for cytotoxicity, skin contact dermatitis and allergenicity of the dye liquor, fabric and waste to ensure safety to human health and the environment.

 

We strive to navigate around different government agencies and their regulations throughout the world. This involves gaining licences for Genetic Modification and ensuring that our media formulations comply with EU REACH regulations and ensuring conformance with OEKO-TEX Eco Passport standard for both our media and strains.

 

As we grow – we seek to form strategic alliances across the world. These partnerships are designed to enable us to take advantage of current supply chain networks but also allows our partners to meet their own sustainability targets. These partners or distributors will have the capability, operational scale and cash reserves to enable Colorifix to prosper.

 

 

COLORIFIX LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Analysis based on Key Performance Indicators

Metres of fabric dyed via yield improvement (g/L of pigment in fermentation). Target is 4x yield improvement across our colour portfolio.

 

Cashflow Forecast Accuracy against our business model is positive at 19% over budget.

 

 

 

Other information and explanations

Turnover is reduced in 2023 as we geared up production within our manufacturing subsidiary CFX Biotech Unipessoal LDA. This is inherent in our group stock levels (2023 - £848,231, 2022 - £nil). 2022 was a year of selling prototypes. Commercial sales began in earnest in the first quarter of 2024.

 

The bulk of our administrative expenses relates to Research & Development. This occurs significantly in the UK, with Portugal being our manufacturing arm. This continues to grow (53% increase from 2022).

 

Cash at bank and in hand at group level has decreased (2023 £4,832,774 2022 £12,365,784). This is largely linked to the scale up of our manufacturing subsidiary in Portugal. Research &. Development also absorbs large amounts of cash.

 

A convertible note round was commenced towards the end of 2023 which generated £2.0 million for the business. Further cash injections up to £1.25 million was paid into the business in 2024. Furthermore, the business is currently going under a series C round which will bring in further cash reserves of £20+ million, of which nearly 50% has been committed.

On behalf of the board

Dr James Ajioka
Director
10 September 2024
COLORIFIX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of a biotechnology company that explains an interface between materials and living organisms. Colorifix engineers microbes that produce, deposit and fix biomolecules onto surfaces. Colorifix focuses on pigment-producing microbes for the textiles industry as an alternative mechanism to chemical dyeing.

 

 

Results and dividends

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Dr James Ajioka
Mr Pascal Brun
(Resigned 31 May 2023)
Mr Wolfgang Hafenmayer
Mr Per Aniansson
Dr Orr Yarkoni
Ms Anna Lind
(Appointed 7 August 2023)
Mr David Yarkoni
(Appointed 7 May 2024)
Mr Christopher Hunter
(Appointed 4 June 2024)
Financial instruments
Risk managment

The company has a risk management plan which helps identify potential risks, evaluate and ensure it develops strategies to manage them. This would include diversifying the risk by different approaches to markets by setting direct or indirect customer relationships. The company successfully achieved ISO 9001 accreditation in the year 2024 and part of this ensures compliance and quality record keeping.

Liquidity risk

The company has a hybrid revenue model - part licensing and part product, which is currently split across three revenue streams. This enables the company to build half the revenue through the mill partnership and at the same time, keep the cost of dyeing with the technology by the dye house low and signal to the market strong unit economics. 

Cashflow risk

Cash flow risk analysed via a five year plan which is updated periodically.  This ensures short term financial liquidity as well as ensuring we optimise the expected level of cash flows and risk. The company is currently going through a series C investment round.

Research and development

Research and development activities continue to unlock new colours in the company's palette.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

COLORIFIX LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Dr James Ajioka
Director
10 September 2024
COLORIFIX LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

COLORIFIX LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COLORIFIX LIMITED
- 6 -
Opinion

We have audited the financial statements of Colorifix Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 directors' 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

COLORIFIX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COLORIFIX LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

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 .

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

COLORIFIX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COLORIFIX LIMITED
- 8 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

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

Other matters which we are required to address

The group and company financial statements for the year ended 31 December 2022 were unaudited.

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.

Jacqueline McCarrell (Senior Statutory Auditor)
For and on behalf of SRG (Audit) LLP
12 September 2024
Chartered Accountants
Statutory Auditor
10 Bolt Court
3rd Floor
London
EC4A 3DA
COLORIFIX LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
10,063
503,278
Cost of sales
(23,097)
(549,728)
Gross loss
(13,034)
(46,450)
Administrative expenses
(9,491,049)
(6,183,965)
Other operating income
10,149
411,391
Operating loss
4
(9,493,934)
(5,819,024)
Interest receivable and similar income
7
118,725
-
0
Interest payable and similar expenses
8
(137)
(29,616)
Amounts written off investments
9
20,633
(15,843)
Loss before taxation
(9,354,713)
(5,864,483)
Tax on loss
10
1,374,472
563,972
Loss for the financial year
(7,980,241)
(5,300,511)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(27,006)
68,050
Total comprehensive income for the year
(8,007,247)
(5,232,461)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
COLORIFIX LIMITED
GROUP AND COMPANY BALANCE SHEETS
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Fixed assets
Deferred tax asset
14
188,990
-
0
-
0
-
0
Tangible assets
11
2,423,941
1,564,703
2,018,524
1,563,463
Investments
12
-
0
-
0
432,729
858
2,612,931
1,564,703
2,451,253
1,564,321
Current assets
Stocks
15
848,231
-
-
-
Debtors
16
3,275,891
2,383,269
4,865,943
2,619,170
Cash at bank and in hand
4,832,774
12,365,784
4,647,374
12,291,569
8,956,896
14,749,053
9,513,317
14,910,739
Creditors: amounts falling due within one year
17
(1,336,783)
(833,833)
(978,310)
(779,467)
Net current assets
7,620,113
13,915,220
8,535,007
14,131,272
Total assets less current liabilities
10,233,044
15,479,923
10,986,260
15,695,593
Creditors: amounts falling due after more than one year
18
(2,000,650)
-
(2,000,650)
-
Net assets
8,232,394
15,479,923
8,985,610
15,695,593
Capital and reserves
Called up share capital
22
2,236
2,234
2,236
2,234
Share premium account
23
25,199,560
25,094,114
25,199,560
25,094,114
Share option reserve
24
654,270
-
0
654,270
-
0
Profit and loss reserves
(17,623,672)
(9,616,425)
(16,870,456)
(9,400,755)
Total equity
8,232,394
15,479,923
8,985,610
15,695,593

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £7,469,701 (2022 - £5,016,791 loss)

The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
10 September 2024
Dr James Ajioka
Director
Company Registration No. 10051398
COLORIFIX LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
1,715
2,348,093
-
(4,383,964)
(2,034,156)
Period ended 31 December 2022:
Loss for the period
-
-
-
(5,300,511)
(5,300,511)
Other comprehensive income:
Currency translation differences
-
-
-
68,050
68,050
Total comprehensive income
-
-
-
(5,232,461)
(5,232,461)
Issue of share capital
22
519
22,746,021
-
-
22,746,540
Balance at 31 December 2022
2,234
25,094,114
-
(9,616,425)
15,479,923
Year ended 31 December 2023:
Loss for the year
-
-
-
(7,980,241)
(7,980,241)
Other comprehensive income:
Currency translation differences
-
-
-
(27,006)
(27,006)
Total comprehensive income
-
-
-
(8,007,247)
(8,007,247)
Issue of share capital
22
2
110,440
-
-
110,442
Transfers
-
-
654,270
-
654,270
Other movements
-
(4,994)
-
-
(4,994)
Balance at 31 December 2023
2,236
25,199,560
654,270
(17,623,672)
8,232,394
COLORIFIX LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
1,715
2,348,093
-
(4,383,964)
(2,034,156)
Period ended 31 December 2022:
Loss and total comprehensive income for the period
-
-
-
(5,016,791)
(5,016,791)
Issue of share capital
22
519
22,746,021
-
-
22,746,540
Balance at 31 December 2022
2,234
25,094,114
-
(9,400,755)
15,695,593
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
(7,469,701)
(7,469,701)
Issue of share capital
22
2
110,440
-
-
110,442
Transfers
-
-
654,270
-
654,270
Other movements
-
(4,994)
-
-
(4,994)
Balance at 31 December 2023
2,236
25,199,560
654,270
(16,870,456)
8,985,610
COLORIFIX LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(9,349,141)
(5,812,100)
Interest paid
(137)
(29,616)
Income taxes refunded/(paid)
950,068
(137,706)
Net cash outflow from operating activities
(8,399,210)
(5,979,422)
Investing activities
Purchase of tangible fixed assets
(1,275,988)
(1,252,238)
Proceeds from disposal of tangible fixed assets
-
64,025
Proceeds from disposal of investments
20,633
(15,843)
Interest received
118,725
-
0
Net cash used in investing activities
(1,136,630)
(1,204,056)
Financing activities
Proceeds from issue of shares
2,180
18,513,146
Issue of convertible loans
2,000,650
-
Net cash generated from financing activities
2,002,830
18,513,146
Net (decrease)/increase in cash and cash equivalents
(7,533,010)
11,329,668
Cash and cash equivalents at beginning of year
12,365,784
1,036,116
Cash and cash equivalents at end of year
4,832,774
12,365,784
COLORIFIX LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
(9,495,897)
(6,017,284)
Interest paid
(17)
(29,616)
Income taxes refunded/(paid)
978,819
(9,228)
Net cash outflow from operating activities
(8,517,095)
(6,056,128)
Investing activities
Purchase of tangible fixed assets
(854,450)
(1,250,906)
Proceeds from disposal of tangible fixed assets
-
0
64,025
Proceeds from disposal of subsidiaries
(431,871)
(858)
Proceeds from disposal of investments
20,628
(15,843)
Interest received
135,763
2,017
Net cash used in investing activities
(1,129,930)
(1,201,565)
Financing activities
Proceeds from issue of shares
2,180
18,513,146
Issue of convertible loans
2,000,650
-
Net cash generated from financing activities
2,002,830
18,513,146
Net (decrease)/increase in cash and cash equivalents
(7,644,195)
11,255,453
Cash and cash equivalents at beginning of year
12,291,569
1,036,116
Cash and cash equivalents at end of year
4,647,374
12,291,569
COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Colorifix Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Innovation Centre Colney Lane, Colney, Norwich, NR4 7GJ.

 

The group consists of Colorifix Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Colorifix Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

The directors continue to assess the company as a going concern.

 

The parent company continues to generate losses, but has over £4.5m in its bank account at the year-end. It is in the pre-income stage of its product development, and projections show profitability in the medium to long term.

 

The company's financial position is supported by its investors coupled with the directors' detailed forecast models to control expenditure.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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 on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
5 years
Laboratory equipment
5-10 years, unless the life of the grant-funded research project is lower
Computer equipment
3-5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
Compound instruments

The component parts of compound instruments issued by the group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.16
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of goods
10,063
503,178
Royalties
-
100
10,063
503,278
COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Other revenue
Interest income
118,725
-
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
26,488
(33,775)
Fees payable to the group's auditor for the audit of the group's financial statements
18,750
-
Depreciation of owned tangible fixed assets
416,750
647,303
Share-based payments
762,532
-
Operating lease charges
381,927
266,696
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
80
52
71
51

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,627,968
2,659,168
4,307,638
2,615,497
Social security costs
456,371
313,650
383,777
307,242
Pension costs
226,280
92,244
226,280
92,057
5,310,619
3,065,062
4,917,695
3,014,796
COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
328,130
253,531
Company pension contributions to defined contribution schemes
12,386
4,403
340,516
257,934
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
139,705
125,932
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
107,802
-
0
Other interest income
10,923
-
Total income
118,725
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
107,802
-
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
137
29,616
9
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
5
-
Other gains/(losses)
Gain/(loss) on disposal of fixed asset investments
20,628
(15,843)
20,633
(15,843)
COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(1,376,176)
(563,972)
Foreign current tax on profits for the current period
1,704
-
0
Total current tax
(1,374,472)
(563,972)

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(9,354,713)
(5,864,483)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(1,777,395)
(1,114,252)
Unutilised tax losses carried forward
1,500,750
1,201,635
Research and development tax credit
(1,099,531)
(651,355)
Effect of overseas tax rates
1,704
-
0
Taxation credit
(1,374,472)
(563,972)
COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Tangible fixed assets
Group
Leasehold land and buildings
Laboratory equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
350,634
2,396,449
147,661
2,894,744
Additions
-
0
1,236,959
39,029
1,275,988
Disposals
-
0
(38,398)
-
0
(38,398)
Transfers
-
0
19,582
(19,582)
-
0
At 31 December 2023
350,634
3,614,592
167,108
4,132,334
Depreciation and impairment
At 1 January 2023
149,512
1,104,095
76,434
1,330,041
Depreciation charged in the year
89,438
287,929
39,383
416,750
Eliminated in respect of disposals
-
0
(38,398)
-
0
(38,398)
Transfers
-
0
6,211
(6,211)
-
0
At 31 December 2023
238,950
1,359,837
109,606
1,708,393
Carrying amount
At 31 December 2023
111,684
2,254,755
57,502
2,423,941
At 31 December 2022
201,122
1,292,354
71,227
1,564,703
Company
Leasehold land and buildings
Laboratory equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
350,634
2,395,117
147,661
2,893,412
Additions
-
0
815,421
39,029
854,450
Disposals
-
0
(38,398)
-
0
(38,398)
Transfers
-
0
19,582
(19,582)
-
0
At 31 December 2023
350,634
3,191,722
167,108
3,709,464
Depreciation and impairment
At 1 January 2023
149,512
1,104,003
76,434
1,329,949
Depreciation charged in the year
89,438
270,568
39,383
399,389
Eliminated in respect of disposals
-
0
(38,398)
-
0
(38,398)
Transfers
-
0
6,211
(6,211)
-
0
At 31 December 2023
238,950
1,342,384
109,606
1,690,940
Carrying amount
At 31 December 2023
111,684
1,849,338
57,502
2,018,524
At 31 December 2022
201,122
1,291,114
71,227
1,563,463
COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
432,729
858
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
858
Additions
431,871
At 31 December 2023
432,729
Carrying amount
At 31 December 2023
432,729
At 31 December 2022
858
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
CFX Biotech Unipessoal LDA
Portugal
Manufacturing
Ordinary
100.00
14
Deferred Taxes

The movement that occurred in the assets and liabilities for deferred taxes in the period ended 31 December 2023 and 2022 was as follows:

 

2023

 

2022

 

Deferred Tax assets

Deferred Tax Liabilities

 

Deferred Tax assets

Deferred Tax Liabilities

Initial balance

-

-

 

-

-

Effect on results

 

 

 

 

 

Reportable tax losses

188,990

-

 

-

-

Final balance

188,990

-

 

-

-

 

 

COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
848,231
-
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,821
566,159
7,100
1,463
Unpaid share capital
-
0
4,994
-
0
4,994
Corporation tax recoverable
1,112,471
904,063
1,112,471
993,463
Amounts owed by group undertakings
-
-
1,970,713
956,903
Other debtors
1,222,316
405,651
988,734
267,014
Prepayments and accrued income
931,283
502,402
786,925
395,333
3,275,891
2,383,269
4,865,943
2,619,170
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
786,045
617,228
698,499
617,228
Other taxation and social security
139,039
91,168
112,529
88,895
Other creditors
172,902
52,495
(709)
12,155
Accruals and deferred income
238,797
72,942
167,991
61,189
1,336,783
833,833
978,310
779,467
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Convertible loans
19
2,000,650
-
0
2,000,650
-
0
COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Convertible loan notes
Group
Company
2023
2022
2023
2022
£
£
£
£
Liability component of convertible loan notes
2,000,650
-
2,000,650
-

The net proceeds received from the issue of the convertible loan notes have been split between the financial liability element and an equity component, representing the fair value of the embedded option to convert the financial liability into equity.

The liability component is measured at amortised cost, and the difference between the carrying amount of the liability at the date of issue and the amount reported in the Balance Sheet represents the effective interest rate less interest paid to that date.

The effective rate of interest is 8% per annum.

The equity component of the convertible loan notes has been credited to the equity reserve. The equity component in the current year is £nil (2022: £nil).

20
Pension Commitments

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

Included in creditors at the year end is £nil (2022: £15,591) in respect of pension contributions.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
226,280
92,244

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 0.03p each
3,917,917
3,910,000
1,175
1,173
Series A Shares of 0.03p each
1,466,325
1,466,325
440
440
Series B Shares of 0.03p each
1,731,188
1,731,188
519
519
Deferred Ordinary Shares of 0.03p each
340,000
340,000
102
102
7,455,430
7,447,513
2,236
2,234
COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Share capital
(Continued)
- 28 -

Ordinary shares rank pari passu with other equity shares (as defined in the articles of association adopted on 1 February 2022) in respect of voting and dividends and last in participation on a distribution of assets, including on a winding up. Ordinary shares are not redeemable.

Series A shares rank pari passu with other classes of equity shares (as defined in the articles of association adopted on 1 February 2022) in respect of voting and dividends and second most senior in participation on a distribution of assets, including on a winding up. Series A shares are not redeemable.

 

Series B shares rank pari passu to other classes of equity shares (as defined in the articles of association adopted on 1 February 2022) in respect of voting and dividends and most senior in participation on a distribution of assets, including on a winding up. Series B shares are not redeemable.

Deferred shares (as defined in the articles of association adopted on 1 February 2022) do not have any rights in respect to voting or dividend and the entire class of shares will receive £1 on a distributions of assets, including on a winding up. Deferred shares are not redeemable.

During the year, 7,917 Ordinary 0.03p shares were issued for total consideration of £110,440.

23
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
25,094,114
2,348,093
25,094,114
2,348,093
Issue of new shares
110,440
22,746,021
110,440
22,746,021
Other movements
(4,994)
-
(4,994)
-
At the end of the year
25,199,560
25,094,114
25,199,560
25,094,114
24
Share option reserve
2023
2022
Group and company
£
£
At the beginning of the year
-
-
Additions
654,270
-
At the end of the year
654,270
-

The reserve represents the cumulative amounts charged to profit in respect of employee share option arrangements where the scheme has not yet been settled by means of an award of shares to an individual. Awards are made annually under the plan. In accordance with the scheme rules, options are exercisable at the option price of the shares subject to all vesting conditions being met.

 

The share-based payment charge has been disclosed in note 4.

COLORIFIX LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Operating lease commitments
Lessee

Of the commitments, £357,569 (2022: £224,419) are payable within one year and £358,333 (2022: £189,580) are payable between two and five years. The lease payments are recognised as an expense when payable.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
715,902
413,999
715,902
413,999
26
Events after the reporting date

Between the year-end and the date of signing the financial statement, the parent company issued convertible loan notes of £926,000.

 

On 14 July 2024, the company incorporated a 100% owned subsidiary, CFX Biotech (India) Private Limited.

27
Related party transactions

Transactions between group companies, which are related parties, have been eliminated on consolidation and are not disclosed in this note.

28
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(7,980,241)
(5,300,511)
Adjustments for:
Taxation credited
(1,374,472)
(563,972)
Finance costs
137
29,616
Investment income
(118,725)
-
0
Depreciation and impairment of tangible fixed assets
416,750
647,303
(Gain)/loss on sale of investments
(20,628)
15,843
Other gains and losses
(5)
-
Equity settled share based payment expense
762,532
-
Movements in working capital:
Increase in stocks
(848,231)
-
Increase in debtors
(689,208)
(1,474,212)
Increase in creditors
502,950
833,833
Cash absorbed by operations
(9,349,141)
(5,812,100)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Dr James AjiokaMr Pascal BrunMr Wolfgang HafenmayerMr Peter McPartlandMs Babette PettersenMr Per AnianssonDr Orr YarkoniMs Anna LindMr David YarkoniMr Christopher 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