Registered number: 07633047
CCM TECHNOLOGIES LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MAY 2024
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CCM TECHNOLOGIES LIMITED
REGISTERED NUMBER: 07633047
BALANCE SHEET
AS AT 31 MAY 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Share-based payment reserve
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Page 1
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CCM TECHNOLOGIES LIMITED
REGISTERED NUMBER: 07633047
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................
P Kisielewski
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The notes on pages 3 to 15 form part of these financial statements.
Page 2
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The Company is a private company limited by shares and incorporated in England (registered number 07633047). The registered office is Unit 9 I.O. Centre, Radway Road, Swindon, SN3 4WH.
CCm Technologies' principal activity is to accelerate decarbonisation for a number of sectors of economy - water treatment, food manufacture, retailing, agriculture and horticulture - by producing low-emissions fertilisers from various waste streams allowing them to benefit from our circular economy solutions. CCm has three other applications of its core intellectual property - heat storage, power generation and plastic replacements - at varied stages of development.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are rounded to the nearest whole pound Sterling.
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
In the year to 31 May 2024, the Company incurred a loss of £1,454,829 (2023: £1,365,172), had net current assets as at 31 May 2024 of £3,213,408 (2023: £1,542,606) and cash and cash equivalents of £6,115,008 (2023: £1,086,397).
In preparing the financial statements, the Directors have considered the ability of the Company to continue as a going concern. The Directors have prepared cash flow forecasts for the Company for a period of at least 12 months from the approval of the financial statements. These forecasts included projections in relation to future spend on projects for which the Company has successfully received additional equity funding to support the forecasted period.
Furthermore, the Directors have reviewed the assumptions made in respect of the timing and realisation of commercial agreements including those presently under negotiation with customers and other parties. The Directors have also considered alternative scenarios whereby pipelines of revenue are not secured or deferred.
Based on these forecasts, which the Directors consider to be achievable, the Directors consider the Company has adequate resources to continue in operational existence for the forseeable future. Therefore, the Directors continue to adopt the going concern basis in preparing the financial statements.
Page 3
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary 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.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Page 4
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives. The Company amortises development expenditure when the development is complete.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Interest income is recognised in profit or loss in the period of receipt of bank interest.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Page 5
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Research and development tax credits are recognised on an accruals basis.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 6
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Over the life of the lease
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Page 7
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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The average monthly number of employees, including directors, during the year was 28 (2023 - 26).
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Page 8
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Investments in subsidiary companies
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Page 9
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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The following were subsidiary undertakings of the Company:
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Unit 9, I O Centre, Radway Road, Swindon, England, SN3 4WH
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Unit 9, I O Centre, Radway Road, Swindon, England, SN3 4WH
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Finished goods and goods for resale
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Prepayments and accrued income
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Cash and cash equivalents
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Page 10
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, non-interest bearing and repayable on demand.
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Charged to profit or loss
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The Company has reviewed its obligation in respect of dilapidations on leased property and recognised a dilapidation provision of £50,000 in respect of the expected future cost to return premises to the condition stated in the lease. The provision is expected to be released at the end of the lease.
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Page 11
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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Allotted, called up and fully paid
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397,651 (2023 - 367,710) Ordinary shares of £0.01 each
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On 21 May 2024, the Company allotted 13,159 Ordinary Shares of £0.01 each for a consideration of £1,568,290.
On 24 May 2024, the Company allotted 16,782 Ordinary Shares of £0.01 each for a consideration of £2,000,079
Page 12
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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During the year ended 31 May 2014, the Company granted 4,058 options to an employee through an unapproved equity-settled share-based payment arrangement.
During the year ended 31 May 2017, the Company granted 12,785 EMI options to employees through an unapproved equity-settled share-based payment arrangement. On 28 June 2018, 2,325 of these options were exercised.
During the year ended 31 May 2020, the Company granted 23,269 EMI options to employees through an equity-settled share-based payment arrangement and granted 27,355 options to employees through an unapproved equity-settled share-based payment arrangement.
During the year ended 31 May 2022, the Company granted 11,984 EMI options to employees through an equity-settled share-based payment arrangement and granted 2,700 options to employees through an unapproved equity-settled share-based payment arrangement.
During the year ended 31 May 2023, the Company granted 5,501 EMI options to employees through an equity-settled share-based payment arrangement.
During the year ended 31 May 2023, 3,048 EMI options were exercised. The Company has recognised a transfer between profit and loss account and the share-based payment reserve of £115,940 in respect of these surrendered options.
During the year ended 31 May 2024, no EMI options were exercised.
The latest date the remaining options can be exercised is 18 May 2033. No performance conditions were attached to the options with the vesting conditions being on the date of grant or over a 3 year period of continuous employment.
The fair value of the share options at the grant date was calculated using the Black-Scholes model, which is considered to be the most appropriate generally accepted valuation method of measuring fair value. This fair value is then expensed over the vesting period of the share options.
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Weighted average exercise price (pence)
2024
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Weighted average exercise price
(pence)
2023
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Outstanding at the beginning of the year
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Surrendered during the year
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Exercised during the year
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Outstanding at the end of the year
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Page 13
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
13.Share-based payments (continued)
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Option pricing model used
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Weighted average share price (pence)
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Weighted average contractual life (days)
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The Company considers the share-based payment charge to be significant to the financial statements. The Company has, therefore, disclosed this separately on the Statement of Comprehensive Income.
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The Company operates a defined contribution pension scheme. During the year, employer pension contributions totalled £39,822 (2023: £35,957). At the year end, pension contributions owing totaled £nil (2023: £nil).
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Commitments under operating leases
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At 31 May 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Post balance sheet events
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On 20 August 2024, the Company allotted 33,754 Ordinary Shares of £0.01 each for a consideration of £4,022,802.
The Company entered into an Innovate loan agreement for £1.9million in August 2024.
Page 14
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CCM TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
In the opinion of the Directors, there is no ultimate controlling party.
The auditor's report on the financial statements for the year ended 31 May 2024 was unqualified.
The audit report was signed on 25 November 2024 by Sue Staunton MA FCA CF (Senior Statutory Auditor) on behalf of James Cowper Kreston Audit.
Page 15
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