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Registration number: 13028918

Lineat Composites Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 November 2023

Pages for filing with Registrar

 

Lineat Composites Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Lineat Composites Limited

Company Information

Directors

G Owen

L Blok

L Cunha

R S Russell

Registered office

Gcc (Building 232) Bro Tathan
St Athan
Barry
CF62 4AF

Registered number

13028918

Accountant

Corrigan Accountants Limited
1st Floor
25 King Street
Bristol
BS1 4PB

 

Lineat Composites Limited

(Registration number: 13028918)
Balance Sheet as at 30 November 2023

Note

2023
£

(As restated)
2022
£

Fixed assets

 

Tangible assets

5

392,841

282,525

Current assets

 

Debtors

6

64,480

53,459

Cash at bank and in hand

 

24,980

41,862

 

89,460

95,321

Creditors: Amounts falling due within one year

7

(749,528)

(30,634)

Net current (liabilities)/assets

 

(660,068)

64,687

Net (liabilities)/assets

 

(267,227)

347,212

Capital and reserves

 

Called up share capital

8

455

455

Share premium reserve

590,061

590,061

Other reserves

8,800

-

Profit and loss account

(866,543)

(243,304)

Total equity

 

(267,227)

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:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

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 Board on 28 November 2024 and signed on its behalf by:
 

.........................................

G Owen
Director

 

Lineat Composites Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

1

Statutory information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Gcc (Building 232) Bro Tathan
St Athan
Barry
CF62 4AF

2

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 13 (2022 - 8).

4

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

5

Tangible fixed assets

Computer equipment
 £

Plant and machinery
£

Total
£

Cost

At 1 December 2022 (As restated)

6,688

277,278

283,966

Additions

3,769

109,445

113,214

At 30 November 2023

10,457

386,723

397,180

Depreciation

At 1 December 2022

1,441

-

1,441

Charge for the year

2,898

-

2,898

At 30 November 2023

4,339

-

4,339

Carrying amount

At 30 November 2023

6,118

386,723

392,841

At 30 November 2022 (As restated)

5,247

277,278

282,525

 

Lineat Composites Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 November 2023

6

Debtors: amounts falling due within one year

2023
£

(As restated)
2022
£

Trade debtors

-

6,240

Prepayments and accrued income

1,188

44,477

VAT

6,271

2,742

Corporation tax

57,021

-

64,480

53,459

7

Creditors

2023
£

2022
£

Amounts falling due within one year

Trade creditors

22,377

19,666

Taxation and social security

102,996

-

Other creditors

3,697

-

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

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £0.0001 each

4,548,696

454.87

4,548,696

454.87

         

9

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

25,000

25,000