Registered number
06338847
Covesion Limited
Filleted Accounts
31 December 2023
Covesion Limited
Statement of Financial Position
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Intangible assets 4 51,532 61,467
Tangible assets 5 118,480 99,719
170,012 161,186
Current assets
Stocks 466,776 465,856
Debtors 6 786,138 558,699
Cash at bank and in hand 473,999 327,595
1,726,913 1,352,150
Creditors: amounts falling due within one year 7 (564,402) (280,311)
Net current assets 1,162,511 1,071,839
Total assets less current liabilities 1,332,523 1,233,025
Creditors: amounts falling due after more than one year 8 (110,000) (170,000)
Provisions for liabilities (30,000) (48,135)
Net assets 1,192,523 1,014,890
Capital and reserves
Called up share capital 44,934 44,934
Share premium 1,074,106 1,074,106
Capital contribution reserve 11 527,410 527,410
Profit and loss account (453,927) (631,560)
Shareholders' funds 1,192,523 1,014,890
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr M Day
Director
Approved by the board on 25 September 2024
Company registration number: 06338847
Covesion Limited
Notes to the Accounts
for the year ended 31 December 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Going Concern
The financial statements have been prepared on a going concern basis. The Directors have prepared forecasts for a period greater than one year from the date of signature of the financial statements and have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future.
Revenue recognition
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill and other intangibles - 20% straight line
Leasehold property - over the life of the lease
If there is an indication that there has been a significant change in amortisation rate, useful life, or the residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and development
Research expenditure is written off in the period in which it is incurred.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant and machinery 15% straight line
Fixtures and fittings 15% straight line
Equipment 33% straight line
Stocks
Stocks are measured at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions for the expected costs of maintenance under guarantees are charged against profits when products have been invoiced. The effect of the time value of money is not material and therefore the provisions are not discounted.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
Operating lease payments are recognised as an expense on a straight line basis over the lease term. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term on a straight ine basis.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Profit before taxation 2023 2022
£ £
Profit before taxation is stated after charging:
Depreciation of tangible assets 25,030 24,482
Amortisation of intangible assets 9,935 2,543
3 Employees 2023 2022
Number Number
Average number of persons employed by the company 26 21
4 Intangible fixed assets £
Goodwill and other intangibles:
Cost
At 1 January 2023 284,046
At 31 December 2023 284,046
Amortisation
At 1 January 2023 222,579
Provided during the year 9,935
At 31 December 2023 232,514
Net book value
At 31 December 2023 51,532
At 31 December 2022 61,467
Intangible assets comprise
Patents Goodwill Leasehold property Total
£ £ £ £
Cost
At 1 January 2023 and 31 December 2023 200,909 53,137 30,000 284,046
Amortisation
At 1 January 2023 191,576 26,878 4,125 222,579
Provided during the year 2,000 5,627 2,308 9,935
At 31 December 2023 193,576 32,505 6,433 232,514
Net book value
At 31 December 2023 7,333 20,632 23,567 51,532
At 31 December 2022 9,333 26,259 25,875 61,467
5 Tangible fixed assets
Fixtures and fittings Plant and machinery etc Equipment Total
£ £ £ £
Cost
At 1 January 2023 11,819 190,885 22,623 225,327
Additions 2,709 22,382 18,700 43,791
At 31 December 2023 14,528 213,267 41,323 269,118
Depreciation
At 1 January 2023 2,124 108,722 14,762 125,608
Charge for the year 1,603 17,194 6,233 25,030
At 31 December 2023 3,727 125,916 20,995 150,638
Net book value
At 31 December 2023 10,801 87,351 20,328 118,480
At 31 December 2022 9,695 82,163 7,861 99,719
6 Debtors 2023 2022
£ £
Trade debtors 295,832 190,700
Other debtors 490,306 367,999
786,138 558,699
7 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 60,000 60,000
Trade creditors 226,020 33,236
Taxation and social security costs 51,230 28,193
Other creditors 227,152 158,882
564,402 280,311
8 Creditors: amounts falling due after one year 2023 2022
£ £
Bank loans 110,000 170,000
9 Loans 2023 2022
£ £
Creditors include:
Secured bank loans 170,000 230,000
The company's bank loan is repayable over 60 months and bears an interest rate of 3.99% and is secured by a fixed and floating charge over all assets. At 31 December 2023 a total of £170,000 (2022: £230,000) remains outstanding of which £60,000 (2022: £60,000) falls due for repayment within one year.
10 Share based payments
Equity settled
At 31 December 2023, the following share options were outstanding in respect of EMI and unapproved share option plans:
EMI Options
301,882 share options were granted in 2020 (granted to 4 employees, with an exercise price of £0.01 per share). All of these options are fully vested.
Unapproved options
100,627 share options were granted in 2020 (granted to 1 consultant, with an exercise price of £0.01 per share) and are all fully vested.
11 Capital contribution reserve 2023 2022
£ £
At 1 January 2023 527,410 527,410
At 31 December 2023 527,410 527,410
12 Other financial commitments 2023 2022
£ £
Total future minimum payments under non-cancellable operating leases 95,105 142,636
13 Other information
Covesion Limited is a private company limited by shares and incorporated in England. Its registered office is:
Unit F3, Adanac Park
Adanac Drive, Nursling
Southampton
Hampshire
SO16 0BT
Covesion Limited 06338847 false 2023-01-01 2023-12-31 2023-12-31 VT Final Accounts October 2023 release 2 Mr M Day No description of principal activity 06338847 2022-01-01 2022-12-31 06338847 core:WithinOneYear 2022-12-31 06338847 core:AfterOneYear 2022-12-31 06338847 core:ShareCapital 2022-12-31 06338847 core:SharePremium 2022-12-31 06338847 core:OtherReservesSubtotal 2022-12-31 06338847 core:RetainedEarningsAccumulatedLosses 2022-12-31 06338847 core:RevaluationReserve 2022-12-31 06338847 core:AllPeriods 2022-12-31 06338847 core:RevaluationReserve 2021-12-31 06338847 2023-01-01 2023-12-31 06338847 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 06338847 bus:AuditExempt-NoAccountantsReport 2023-01-01 2023-12-31 06338847 bus:Director40 2023-01-01 2023-12-31 06338847 1 2023-01-01 2023-12-31 06338847 2 2023-01-01 2023-12-31 06338847 core:Goodwill 2023-01-01 2023-12-31 06338847 core:LandBuildings 2023-01-01 2023-12-31 06338847 core:PlantMachinery 2023-01-01 2023-12-31 06338847 core:Vehicles 2023-01-01 2023-12-31 06338847 countries:England 2023-01-01 2023-12-31 06338847 bus:FRS102 2023-01-01 2023-12-31 06338847 bus:FullAccounts 2023-01-01 2023-12-31 06338847 2023-12-31 06338847 core:WithinOneYear 2023-12-31 06338847 core:AfterOneYear 2023-12-31 06338847 core:ShareCapital 2023-12-31 06338847 core:SharePremium 2023-12-31 06338847 core:OtherReservesSubtotal 2023-12-31 06338847 core:RetainedEarningsAccumulatedLosses 2023-12-31 06338847 core:Goodwill 2023-12-31 06338847 core:LandBuildings 2023-12-31 06338847 core:PlantMachinery 2023-12-31 06338847 core:Vehicles 2023-12-31 06338847 core:CapitalContributionReserve 2023-12-31 06338847 core:AllPeriods 2023-12-31 06338847 2022-12-31 06338847 core:Goodwill 2022-12-31 06338847 core:LandBuildings 2022-12-31 06338847 core:PlantMachinery 2022-12-31 06338847 core:Vehicles 2022-12-31 06338847 core:CapitalContributionReserve 2022-12-31 iso4217:GBP xbrli:pure