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COMPANY REGISTRATION NUMBER: 07264317
Algaecytes Limited
Filleted Unaudited Financial Statements
31 August 2024
Algaecytes Limited
Financial Statements
Period from 1 January 2024 to 31 August 2024
Contents
Page
Statement of financial position
1
Notes to the financial statements
3
Algaecytes Limited
Statement of Financial Position
31 August 2024
31 Aug 24
31 Dec 23
Note
£
£
£
Fixed assets
Intangible assets
5
109,636
118,084
Tangible assets
6
873,587
914,453
Investments
7
2,185,595
1,840,952
------------
------------
3,168,818
2,873,489
Current assets
Debtors
8
437,448
526,812
Cash at bank and in hand
1,183,965
429,153
------------
---------
1,621,413
955,965
Creditors: amounts falling due within one year
9
587,920
380,536
------------
---------
Net current assets
1,033,493
575,429
------------
------------
Total assets less current liabilities
4,202,311
3,448,918
Creditors: amounts falling due after more than one year
10
268,333
341,667
------------
------------
Net assets
3,933,978
3,107,251
------------
------------
Capital and reserves
Called up share capital
1,154
1,111
Share premium account
12
18,296,391
16,130,663
Share option reserve
12
560,845
476,021
Profit and loss account
12
( 14,924,412)
( 13,500,544)
-------------
-------------
Shareholders funds
3,933,978
3,107,251
-------------
-------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the period ending 31 August 2024 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 period 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 .
Algaecytes Limited
Statement of Financial Position (continued)
31 August 2024
These financial statements were approved by the board of directors and authorised for issue on 9 January 2025 , and are signed on behalf of the board by:
Mr I Warwick
Mr A J Cosentino
Director
Director
Company registration number: 07264317
Algaecytes Limited
Notes to the Financial Statements
Period from 1 January 2024 to 31 August 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Camburgh House, 27 New Dover Road, Canterbury, CT1 3DN, Kent.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the 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 financial assets and liabilities. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
These accounts have been prepared on a going concern basis as the Directors believe that the company is able to meet its debts as they fall due for at least the next 12 months from the date of approval of these financial statements.
Grant income
Grants received are held in other creditors in the Balance Sheet and are recognised under other operating income in line with the expenses to which the grant relates.
Consolidation
The entity has taken advantage of the option not to prepare consolidated financial statements contained in Section 399 of the Companies Act 2006 on the basis that the entity and its subsidiary undertakings comprise a small group.
Assets under construction
Assets under construction are initially recorded at cost, and are not depreciated until construction of the asset is completed. At this this point the asset will be reclassified, and be depreciated in line with the tangible assets policy.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. 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
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:
Patents, trademarks and licences
-
5-8% dependent on the period of the patent granted
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Equipment
-
33% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Impairment of fixed assets
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.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Share-based payments
Equity-settled share-based payment transactions are measured at fair value at the date of grant. The fair value is expensed on a straight-line basis over the vesting period, with a corresponding increase in equity. This is based upon the company's estimate of the shares or share options that will eventually vest which takes into account all vesting conditions and non-market performance conditions, with adjustments being made where new information indicates the number of shares or share options expected to vest differs from previous estimates. Fair value is determined using an appropriate pricing model. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met. Where the terms of an equity-settled transaction are modified, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the fair value of the transaction, as measured at the date of modification. Where an equity-settled transaction is cancelled or settled, it is treated as if it had vested on the date of cancellation or settlement, and any expense not yet recognised in profit or loss is expensed immediately. Cash-settled share-based payment transactions are measured at the fair value of the liability. Until the liability is settled, the fair value of the liability is re-measured at each reporting date and at the date of settlement, with any changes in fair value recognised in profit or loss for the period.
4. Employee numbers
The average number of persons employed by the company during the period amounted to 13 (2023: 15 ).
5. Intangible assets
Patents, trademarks and licences
£
Cost
At 1 January 2024 and 31 August 2024
196,402
---------
Amortisation
At 1 January 2024
78,318
Charge for the period
8,448
---------
At 31 August 2024
86,766
---------
Carrying amount
At 31 August 2024
109,636
---------
At 31 December 2023
118,084
---------
6. Tangible assets
Equipment
Assets under construction
Total
£
£
£
Cost
At 1 January 2024 and 31 August 2024
1,159,118
663,164
1,822,282
------------
---------
------------
Depreciation
At 1 January 2024
907,829
907,829
Charge for the period
40,866
40,866
------------
---------
------------
At 31 August 2024
948,695
948,695
------------
---------
------------
Carrying amount
At 31 August 2024
210,423
663,164
873,587
------------
---------
------------
At 31 December 2023
251,289
663,164
914,453
------------
---------
------------
Fixed assets under construction represents the capital expenditure portion of the Company's contribution to a joint project with its German subsidiary.
7. Investments
Shares in group undertakings
£
Cost
At 1 January 2024
1,840,952
Additions
344,643
------------
At 31 August 2024
2,185,595
------------
Impairment
At 1 January 2024 and 31 August 2024
------------
Carrying amount
At 31 August 2024
2,185,595
------------
At 31 December 2023
1,840,952
------------
Subsidiaries, associates and other investments
Investment represents the Company's capital contribution and equity interest in its German subsidiary.
8. Debtors
31 Aug 24
31 Dec 23
£
£
Other debtors
437,448
526,812
---------
---------
Other debtors includes prepayments, VAT reimbursement due but not yet received and R&D Corporation Tax Credit due but not yet received.
9. Creditors: amounts falling due within one year
31 Aug 24
31 Dec 23
£
£
Bank and other loans
110,000
110,000
Trade creditors
425,332
237,034
Social security and other taxes
11,068
7,838
Other creditors
41,520
25,664
---------
---------
587,920
380,536
---------
---------
10. Creditors: amounts falling due after more than one year
31 Aug 24
31 Dec 23
£
£
Bank and other loans
268,333
341,667
---------
---------
11. Share-based payments
The model assumes the government gilt rate at the time of issue as the risk-free rate and uses 40-47% volatility, which is similar to public companies undertaking comparable trades on the same date. The share options have a maximum vesting period of 2 years and must be exercised either before the fifth or tenth anniversary of the date of grant depending on the option plan.
Details of the number and weighted average exercise prices (WAEP) of share options during the period are as follows:
31 Aug 24
31 Dec 23
No.
WAEP
No.
WAEP
Outstanding at 1 January 2024
496,051
5.83
521,835
5.47
Granted during the period
103,449
9.65
5,392
18.09
Forfeited during the period
( 1,000)
0.69
( 25,000)
0.69
Expired during the period
( 36,122)
9.46
( 6,176)
6.92
---------
-----
---------
-------
Outstanding at 31 August 2024
562,378
6.31
496,051
5.83
---------
-----
---------
-------
Exercisable at 31 August 2024
161,878
7.80
94,551
6.42
---------
-----
---------
-------
The prior year adjustment relates to the re-recognition of share options that were previously extended.
The total expense recognised in profit or loss for the period is as follows:
31 Aug 24
31 Dec 23
£
£
Equity-settled share-based payments
84,824
77,153
--------
--------
The Directors believe the value of the services received is equal to the fair value of the share equity-settled options granted and therefore, is measured at the grant date using the Black-Scholes option pricing model, considering the terms and conditions upon which the instruments were granted.
12. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Share option reserve - This reserve records the value received in relation to the issue of share options. Other equity reserve - This reserve relates to the equity element of the convertible loan. Profit and loss account - This reserve records retained earnings and accumulated losses.
13. Operating real property leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
31 Aug 24
31 Dec 23
£
£
Not later than 1 year
259,138
259,138
Later than 1 year and not later than 5 years
86,379
259,138
---------
---------
345,517
518,276
---------
---------
14. Related party transactions
There was no one controlling party during the current period or previous year.