Registration number:
Lineat Composites Limited
for the Year Ended 30 November 2023
Pages for filing with Registrar
Lineat Composites Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Lineat Composites Limited
Company Information
Directors |
G Owen L Blok L Cunha R S Russell |
Registered office |
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Registered number |
13028918 |
Accountant |
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Lineat Composites Limited
(Registration number: 13028918)
Balance Sheet as at 30 November 2023
Note |
2023 |
(As restated) |
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Fixed assets |
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Tangible assets |
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282,525 |
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Current assets |
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Debtors |
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53,459 |
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Cash at bank and in hand |
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41,862 |
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89,460 |
95,321 |
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Creditors: Amounts falling due within one year |
(749,528) |
(30,634) |
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Net current (liabilities)/assets |
( |
64,687 |
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Net (liabilities)/assets |
( |
347,212 |
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Capital and reserves |
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Called up share capital |
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455 |
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Share premium reserve |
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590,061 |
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Other reserves |
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- |
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Profit and loss account |
( |
(243,304) |
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Total equity |
( |
347,212 |
Lineat Composites Limited
(Registration number: 13028918)
Balance Sheet as at 30 November 2023
For the financial year ending 30 November 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised for issue by the
.........................................
Director
Lineat Composites Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023
Statutory information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The financial statements are prepared in pounds sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Going concern
The accounts have been prepared on a going concern basis as the directors consider that the recently closed £1,250,000 equity investment round will provide sufficient funds for the company to operate in line with its strategic plan into 2026. Alongside this, the company has been successful in winning £420,000 of grant funding, allowing further development of its processes.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Lineat Composites Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023
Government grants
Government grants are recognised, using the performance model, at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible fixed assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Computer equipment |
33% straight line |
Plant and machinery will begin to be depreciated once the asset comes into use by the company.
Research and development costs
Research and development costs are written off to profit or loss in the year incurred. Research and development costs assosciated with the development of the plant and machinery held under tangible fixed assets, are capitalised with the cost of the tangible fixed asset. These costs will begin to be depreciated once the plant and machinery comes into use.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
Lineat Composites Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023
Trade debtors
Trade debtors are recognised at the transaction price less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are recognised at the transaction price.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employees' services are received.
Lineat Composites Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023
Convertible debt
The net proceeds received from the issue of convertible debt instruments are split between a liability element and an equity component at the date of issue. The fair value of the liability component is estimated using the prevailing market interest rate for similar nonconvertible debt. The difference between the proceeds of issue of the convertible bonds and the fair value assigned to the liability component, representing the embedded option to convert the liability into equity of the company, is included in equity and is not remeasured. The liability component is carried at amortised cost.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Prior year adjustment |
The company's results for the year ended 30 November 2022 have been restated from the results previously reported. The adjustment is to recognise research and development expenditure into an item of plant and machinery as an asset on the balance sheet, and to recognise grant income related to work completed in the year.
An adjustment has also been made to recognise interest on convertible loans which were converted into shares in the year ended 30 November 2022, which led to share premium being understated.
The overall impact on the financial statements for the year ended 30 November 2022:
• Increase the reserves carried forward by £319,558;
• Increase tangible fixed assets by £277,278;
• Increase debtors by £42,280;
• Increase interest payable and similar expenses by £3,281.
In addition, there has been a restatement to recognised the VAT debtor of £2,742 under debtors rather than under creditors as previously reported.
Lineat Composites Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023
Tangible fixed assets |
Computer equipment |
Plant and machinery |
Total |
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Cost |
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At 1 December 2022 (As restated) |
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Additions |
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At 30 November 2023 |
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Depreciation |
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At 1 December 2022 |
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- |
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Charge for the year |
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- |
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At 30 November 2023 |
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- |
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Carrying amount |
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At 30 November 2023 |
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At 30 November 2022 (As restated) |
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Lineat Composites Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023
Debtors: amounts falling due within one year |
2023 |
(As restated) |
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Trade debtors |
- |
6,240 |
Prepayments and accrued income |
1,188 |
44,477 |
VAT |
|
2,742 |
Corporation tax |
57,021 |
- |
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53,459 |
Creditors |
2023 |
2022 |
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Amounts falling due within one year |
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Trade creditors |
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19,666 |
Taxation and social security |
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- |
Other creditors |
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- |
Accruals |
2,198 |
9,168 |
Convertible debt |
616,460 |
- |
Directors' loan accounts |
1,800 |
1,800 |
749,528 |
30,634 |
The convertible debt represents £600,000 of convertible loan notes issued in year, being £350,000 and £250,000 to two existing minority shareholders.
The loan notes accrue interest at a rate of 6.25% which compounds annually until the earlier of the conversion date or the date on which the loan notes are repaid.
The redemption of the convertible loan notes ranks ahead of other unsecured creditors of the company, but rank equally with respect to the redemption of any future convertible loan agreement.
The balance at the year end of £616,640 (2022: £Nil) was converted into shares in the year ended 30 November 2024.
Lineat Composites Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
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No. |
£ |
No. |
£ |
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454.87 |
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454.87 |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
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