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Company registration number:
11169781
Avandel Limited
Unaudited Filleted Financial Statements for the year ended
31 December 2023
Avandel Limited
Report to the board of directors on the preparation of the unaudited statutory financial statements of Avandel Limited
Year ended
31 December 2023
As described on the statement of financial position, the Board of Directors of
Avandel Limited
are responsible for the preparation of the
financial statements
for the year ended
31 December 2023
, which comprise the income statement, statement of financial position, statement of changes in equity and related notes.
You consider that the company is exempt from an audit under the Companies Act 2006.
In accordance with your instructions we have compiled these unaudited financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and from information and explanations supplied to us.
Fistral Accounting
Chartered Accountants
Mor Workspace
Lane
Newquay
Cornwall
TR7 2FP
United Kingdom
Date:
12 September 2024
Avandel Limited
Statement of Financial Position
31 December 2023
20232022
Note££
Fixed assets    
Intangible assets 5
38,814
 
29,909
 
Tangible assets 6
25,617
 
21,489
 
Investments 7
1
 
1
 
64,432
 
51,399
 
Current assets    
Stocks
61,456
 
101,500
 
Debtors 8
205,112
 
168,968
 
Cash at bank and in hand
205,476
 
328,452
 
472,044
 
598,920
 
Creditors: amounts falling due within one year 9
(173,206
)
(448,912
)
Net current assets
298,838
 
150,008
 
Total assets less current liabilities 363,270   201,407  
Capital and reserves    
Called up share capital
20,922
 
19,153
 
Share premium
6,799,886
 
4,834,765
 
Other reserves
28,649
 
23,099
 
Profit and loss account
(6,486,187
)
(4,675,610
)
Shareholders funds
363,270
 
201,407
 
For the year ending
31 December 2023
, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
  • The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
  • The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These
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.
These
financial statements
were approved by the board of directors and authorised for issue on
12 September 2024
, and are signed on behalf of the board by:
Nicholas Charles Morland
George Vasilaras
DirectorDirector
Company registration number:
11169781
Avandel Limited
Notes to the Financial Statements
Year ended
31 December 2023

1 General information

The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is
11 Shepherd Market
,
London
,
W1J 7PG
, England.

2 Statement of compliance

These
financial statements
have been prepared in compliance with FRS 102 Section 1A, 'The Financial Reporting Standard applicable to the UK and Republic of Ireland'.

3 Accounting policies

Basis of preparation

The
financial statements
have been prepared on the historical cost basis, as modified by the revaluation of certain assets.
The
financial statements
are prepared in sterling, which is the presentational currency of the company. The functional currency of the company is US dollars. The comparative figures for the year end 31 December 2022 have been retranslated from US dollars to sterling using the spot exchange rates at the dates of the transactions or the closing rate if applicable.

Going concern

As at the year end date the Income Statement showed losses for the year of £1,815,842 (2022: £2,077,562). The directors have prepared these financial statements on the going concern basis. At the time of approving these financial statements and in coming to this conclusion, the directors have assessed current trade and expected future performance and support for the Company. The Company is reliant upon ongoing support from investment funds who have confirmed financial support for at least twelve months from the date of approval of these financial statements. Therefore the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.

Consolidation

The financial statements contain information about Avandel Limited as an individual company and do not contain consolidated financial information as the parent of a group.
The entity has taken advantage of the option not to prepare consolidated
financial statements
contained in Section 398 of the Companies Act 2006 on the basis that the entity and its subsidiary undertaking comprise a small group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on delivery of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Intangible assets

Intangible assets are initially measured at cost and are subsequently measured at cost less any accumulated amortisation and accumulated impairment losses or at a revalued amount. However, Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Other intangible assets
10% straight line

Tangible assets

Tangible assets are initially measured at cost, and are subsequently measured at cost less any accumulated depreciation and accumulated impairment losses or at a revalued amount.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Plant and machinery
25% straight line

Fixed asset investments

Investments in subsidiaries, associates and joint ventures accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.
Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price and are subsequently measured as follows: Debt instruments are subsequently measured at amortised cost and commitments to receive a loan and to make a loan to another entity are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
All other financial instruments, including derivatives, are initially recognised at fair value, which is normally the transaction price and are subsequently measured at fair value, with any changes recognised in profit or loss.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
All equity instruments regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Foreign currency translation

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions or using the average exchange rate for the year if applicable. At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within. All other foreign exchange gains and losses are presented in profit or loss within "Administative expenses".

4 Average number of employees

The average number of persons employed by the company during the year was
8
(2022:
7
).

5 Intangible assets

Other intangible assets
£
Cost  
At
1 January 2023
37,332
 
Additions
14,043
 
At
31 December 2023
51,375
 
Amortisation  
At
1 January 2023
7,423
 
Charge
5,138
 
At
31 December 2023
12,561
 
Carrying amount  
At
31 December 2023
38,814
 
At 31 December 2022
29,909
 

6 Tangible assets

Plant and machinery etc.
£
Cost  
At
1 January 2023
28,652
 
Additions
10,182
 
At
31 December 2023
38,834
 
Depreciation  
At
1 January 2023
7,163
 
Charge
6,054
 
At
31 December 2023
13,217
 
Carrying amount  
At
31 December 2023
25,617
 
At 31 December 2022
21,489
 

7 Investments

Shares in group undertakings and participating interests
£
Cost  
At
1 January 2023
1
 
At
31 December 2023
1
 
Impairment  
At
1 January 2023
and
31 December 2023
-  
Carrying amount  
At
31 December 2023
1
 
At 31 December 2022
1
 
Avandel US Inc. is a 100% subsidiary undertaking of the company. The registered office of the subsidiary is 251 Little Falls Drive, Wilmington, New Castle, Delaware, United States of America. The principal activity of Avandel US Inc. matches that of the company's.

8 Debtors

20232022
££
Trade debtors
15,034
 
88,855
 
Amounts owed by group undertakings and undertakings in which the company has a participating interest
156,924
 
10,089
 
Other debtors
33,154
 
70,024
 
205,112
 
168,968
 
Amounts owed by group undertakings are interest free and repayable on demand.

9 Creditors: amounts falling due within one year

20232022
££
Trade creditors
44,013
 
265,064
 
Taxation and social security
1,518
 
3,997
 
Other creditors
127,675
 
179,851
 
173,206
 
448,912
 

10 Share-based payments

The company introduced a share option scheme in which certain employees and stakeholders of Avandel Limited can participate.
The scheme is equity settled. The fair value of the options has been calculated using the Black Scholes model, it was considered that this approach would result in materially accurate estimate of the fair value of the options granted.
There were 2,618 (2022: 2,160) options outstanding at the beginning of the year. During the year 266 (2022: 458) options were granted and 364 (2022: Nil) lapsed.
The total expense recognised in profit or loss for the year was £5,550 (2022: £20,742). These amounts are included within administrative expenses.

11 Share capital

During the year there has been an issue of 1,769 (2022: 1,985) ordinary shares with an aggregated nominal value of £1,769 (2022: £1,985) for consideration of £1,966,890 (2022: £1,489,881). The purpose of the share issue was to inject further equity funding into the company.