Company registration number 13289543 (England and Wales)
TURNTIDE TRANSPORT LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TURNTIDE TRANSPORT LIMITED
COMPANY INFORMATION
Directors
M Cox
S Hornyak
(Appointed 11 June 2024)
Company number
13289543
Registered office
Turntide Drives
Eighth Avenue
Team Valley Trading Estate
Gateshead
England
NE11 0QA
Auditor
Sumer Auditco Limited
Unit 2
Gosforth Park Avenue
Newcastle Upon Tyne
NE12 8EG
TURNTIDE TRANSPORT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
TURNTIDE TRANSPORT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The company principal activity of the company continued to be that of an investment holding company. The principal activity of the group continued to be that of the development of low carbon vehicle technology.

 

In quarter 2 of 2021, the company completed the acquisitions of Hyperdrive Innovation Holdings Limited (“the Hyperdrive Group”), Avid Technology Group Limited and Collingwood Solutions Limited. The acquisitions were financed through the company’s parent, Turntide Transport Inc, a company registered in the United States.

 

The Group has made a loss of £21,290,659 (2022 - £28,850,144) in it’s second trading period. This is expected due to the fact the Group are still in the developmental stage.

 

Despite having made a loss, to facilitate our growth aspirations, we have continued to invest in the acquired businesses, to aid the long term success of the group; particularly in our Research and Development and New Product Introduction areas of the business.

 

Two of the three operating subsidiaries increased revenue year over year, whilst the decrease in revenue in Hyperdrive was attributable primarily to the loss of one customer.

 

EBITDA before exceptional items has improved year over year by £3,155,503.

 

Future developments

It is now very clear that electrification is accelerating across the world, driven by government directives, environmental concerns and rapid improvement in battery cell technology. Although this brings about a more competitive landscape and market.

Principal risks and uncertainties

The management of the business and the execution of the group's strategy are subject to a number of risks. The board reviews these risks and puts in place policies to mitigate them.

 

The key business and financial risks are:

 

Price risk

The principal risk to the business is price risk through the fluctuation of supplier prices. The directors manage price risk on an ongoing basis to ensure they remain competitive within the market.

 

Employees

The supply of skilled engineers is a risk for the group as demand can fluctuate depending on the number of contracts. The directors are closely involved with the required staffing levels which helps to manage this risk.

 

Environment, health and safety incidents

Appropriate measures are implemented to ensure the risk of any environmental and health and safety issues are minimised.

 

Liquidity risk

The directors regularly monitor the financial information to ensure that any risks in this area are considered on a timely basis ensuring the group has sufficient working capital.

 

Credit risk

The directors regularly monitors debtors to ensure that any risks of bad and doubtful debts are provided for on a timely basis.

TURNTIDE TRANSPORT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The directors consider turnover, gross profit margin, and EBITDA (earnings before interest, tax, depreciation and amortisation) to be key measures of the group's performance:

 

The loss after tax for the year was £21,290,659 (2022 - £28,850,144) and the net assets position at the year end was £5,797,575 (2022 - £27,088,234).

 

The directors consider the group's results to be satisfactory in light of current market conditions.

On behalf of the board

S Hornyak
Director
24 January 2025
TURNTIDE TRANSPORT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M Cox
M S Karim
(Resigned 30 August 2024)
R J Morris
(Resigned 8 October 2023)
C R Pennison
(Resigned 31 December 2023)
S Hornyak
(Appointed 11 June 2024)
Auditor

In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and future developments.

TURNTIDE TRANSPORT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
S Hornyak
Director
24 January 2025
TURNTIDE TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TURNTIDE TRANSPORT LIMITED
- 5 -
Opinion

We have audited the financial statements of Turntide Transport Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

TURNTIDE TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TURNTIDE TRANSPORT LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

TURNTIDE TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TURNTIDE TRANSPORT LIMITED
- 7 -
Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Slater (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
Statutory Auditor
Unit 2
Gosforth Park Avenue
Newcastle Upon Tyne
NE12 8EG
28 January 2025
TURNTIDE TRANSPORT LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
29,472,817
34,190,047
Cost of sales
(22,234,154)
(28,663,192)
Gross profit
7,238,663
5,526,855
Administrative expenses
(28,633,248)
(32,601,606)
Other operating income
92,243
129,326
Exceptional item
4
-
0
(2,095,999)
Operating loss
5
(21,302,342)
(29,041,424)
Interest payable and similar expenses
8
(2,116,418)
(645,342)
Loss before taxation
(23,418,760)
(29,686,766)
Tax on loss
9
2,128,101
836,622
Loss for the financial year
(21,290,659)
(28,850,144)
Loss for the financial year is all attributable to the owners of the parent company.
TURNTIDE TRANSPORT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Loss for the year
(21,290,659)
(28,850,144)
Other comprehensive income
-
-
Total comprehensive income for the year
(21,290,659)
(28,850,144)
Total comprehensive income for the year is all attributable to the owners of the parent company.
TURNTIDE TRANSPORT LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
23,959,123
25,892,328
Other intangible assets
11
6,286,025
13,972,555
Total intangible assets
30,245,148
39,864,883
Tangible assets
12
8,395,192
9,233,259
38,640,340
49,098,142
Current assets
Stocks
15
5,771,723
4,173,384
Debtors falling due after more than one year
16
1,318,186
633,630
Debtors falling due within one year
16
8,321,595
8,879,204
Cash at bank and in hand
1,987,184
2,438,193
17,398,688
16,124,411
Creditors: amounts falling due within one year
17
(45,084,252)
(33,382,780)
Net current liabilities
(27,685,564)
(17,258,369)
Total assets less current liabilities
10,954,776
31,839,773
Creditors: amounts falling due after more than one year
18
(21,667)
(31,667)
Provisions for liabilities
Provisions
20
5,135,534
4,719,872
(5,135,534)
(4,719,872)
Net assets
5,797,575
27,088,234
Capital and reserves
Called up share capital
23
68,586,084
68,586,084
Profit and loss reserves
(62,788,509)
(41,497,850)
Total equity
5,797,575
27,088,234
The financial statements were approved by the board of directors and authorised for issue on 24 January 2025 and are signed on its behalf by:
S Hornyak
Director
Company registration number 13289543 (England and Wales)
TURNTIDE TRANSPORT LIMITED
COMPANY BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
41,795,928
67,842,454
Current assets
Debtors
16
29,559,699
19,229,288
Cash at bank and in hand
182,608
401,925
29,742,307
19,631,213
Creditors: amounts falling due within one year
17
(36,078,858)
(25,064,027)
Net current liabilities
(6,336,551)
(5,432,814)
Net assets
35,459,377
62,409,640
Capital and reserves
Called up share capital
23
68,586,084
68,586,084
Profit and loss reserves
(33,126,707)
(6,176,444)
Total equity
35,459,377
62,409,640

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £26,950,263 (2022 - £2,094,535 loss).

The financial statements were approved by the board of directors and authorised for issue on 24 January 2025 and are signed on its behalf by:
S Hornyak
Director
Company registration number 13289543 (England and Wales)
TURNTIDE TRANSPORT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
68,586,084
(12,647,706)
55,938,378
Year ended 31 December 2022:
Loss and total comprehensive income
-
(28,850,144)
(28,850,144)
Balance at 31 December 2022
68,586,084
(41,497,850)
27,088,234
Year ended 31 December 2023:
Loss and total comprehensive income
-
(21,290,659)
(21,290,659)
Balance at 31 December 2023
68,586,084
(62,788,509)
5,797,575
TURNTIDE TRANSPORT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
68,586,084
(4,081,909)
64,504,175
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(2,094,535)
(2,094,535)
Balance at 31 December 2022
68,586,084
(6,176,444)
62,409,640
Year ended 31 December 2023:
Profit and total comprehensive income
-
(26,950,263)
(26,950,263)
Balance at 31 December 2023
68,586,084
(33,126,707)
35,459,377
TURNTIDE TRANSPORT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
2,052,680
(3,052,850)
Interest paid
(2,042,485)
(597,041)
Income taxes (paid)/refunded
(95,140)
723,608
Net cash outflow from operating activities
(84,945)
(2,926,283)
Investing activities
Purchase of intangible assets
-
(33,855)
Purchase of tangible fixed assets
(420,069)
(787,108)
Proceeds from disposal of tangible fixed assets
64,005
90,500
Net cash used in investing activities
(356,064)
(730,463)
Financing activities
Repayment of bank loans
(10,000)
(8,333)
Payment of finance leases obligations
-
(4,849)
Net cash used in financing activities
(10,000)
(13,182)
Net decrease in cash and cash equivalents
(451,009)
(3,669,928)
Cash and cash equivalents at beginning of year
2,438,193
6,108,121
Cash and cash equivalents at end of year
1,987,184
2,438,193
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Turntide Transport Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Turntide Drives, Eighth Avenue, Team Valley Trading Estate, Gateshead, England, NE11 0QA.

 

The group consists of Turntide Transport Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Turntide Transport Limited, as an individual entity, meets the definition of a qualifying entity per FRS 102 and has taken advantage of the exemption available in paragraph 1.12 of FRS 102 from presenting a company-only statement of cash flows. These consolidated financial statements include a consolidated statement of cash flows which include the cash flows of Turntide Transport Limited.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Turntide Transport Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

The financial statements have been prepared on the going concern basis. The directors have a reasonable expectation that the parent company and group has adequate resources to continue in operational existence for the foreseeable future subject to the continued support of the parent company, Turntide Technologies Inc (“TT Inc”).

 

The ultimate parent company’s strategy has been to accelerate technological investments in select markets to ensure its long-term success. Since its inception, TT Inc has incurred net losses and negative cash flows from operations. In order to be able to be able to support the parent company and group, the ultimate parent company will require additional liquidity to meet its 12 months working capital requirement. TT Inc plans to continue financing its operations through revenues from future sales, debt, and equity financing; whilst also reducing the cash burden through efficiencies achieved in operations.

 

Having assessed the expected funding requirements of the parent company and group for the next 12 months, the directors are confident that the current cash levels of the TT Inc group and the measures outlined above, mitigate the risk of going concern uncertainty and will ensure that TT Inc is able to continue to provide sufficient group support for at least twelve months from date of approval of these financial statements. As such the financial statements have been prepared on a going concern basis.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 15 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years straight line
Trade names
1 year straight line
Developed technology
7 years straight line
Customer relationships
15 years straight line
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
2-6% straight line
Plant and equipment
10-50% straight line
Fixtures and fittings
33% straight line
Computers
33% straight line
Motor vehicles
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received, if considered material to the financial statements.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment in non-financial assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. Impairment reviews were undertaken at 31 December 2023.

The recoverable amounts of the CGUs were assessed as being in excess of the carrying values and therefore no impairments have been recognised. The assessment was based on value in use calculations using 5 year approved forecasts. For the purposes of this impairment test these forecasts assume significant revenue growth over a 5 year period with only inflationary growth thereafter. As per note 10, an impairment has been recognised in the year in relation to customer relationships and developed technology held in intangible assets.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provision for battery disposal costs

The group is required under UK Laws and Regulations to take back, free of charge from the end user, waste batteries that it has previously supplied and then to ensure that all waste batteries taken back are delivered for treatment and recycling to an authorised battery treatment facility or to an approved exporter for treatment outside of the UK. The group makes provision for these estimated future costs of disposal. The provision involves a significant amount of estimation as it takes into account the expected life of the batteries, expected cost of disposal, and the number of batteries expected to be returned for disposal each year. This estimate is based on past experience of the performance of similar projects. The carrying value of this provision is £3,888,556 (2022 - £3,855,216) as disclosed in note 20. This provision is based upon current legislation and disposal technologies. Any future changes in legislation or technologies could impact the quantum of this provision.

Warranty provision

The group provides warranties on sales of batteries for a 2 year period following completion of the sale, unless additional warranty periods are specifically agreed in line with the user application. The directors have estimated the likely cost of these warranties based on historic experience of warranty claims. This is based on historical experience of costs incurred relating to historical sales. The carrying value of this provision is £713,746 (2022 - £379,517).

Rectification provision

The group has provided for estimated rectification costs on certain battery packs currently in the field. The nature of the work required means that the timing and likely cost is uncertain. The estimate costs include expected shipping and labour costs. The costs are expected to be incurred within the next 2 years. The carrying value of this provision is £533,232 (2022 - £485,139).

TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Determining residual values and useful economic lives of intangible and tangible fixed assets

The group depreciates intangible and tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management.

 

Judgement is applied by management when determining the residual values of intangible and tangible fixed assets. When determining the residual value management aim to assess the amount that the group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life.

 

The carrying amount of intangible fixed assets excluding goodwill at the reporting date was £6,286,025 (2022 - £13,972,555). The carrying amount of tangible fixed assets at the reporting date was £8,395,192 (2022 - £9,233,259).

Deferred tax asset

Deferred tax assets are recognised to the extent that it is probable that they will be recovered against future taxable profits. The carrying amount of deferred tax assets is reviewed at each reporting end date and requires the directors to estimate the level of future profits expected to be recovered. The carrying value of the deferred tax asset is £1,318,186 (2022 - £633,630). Although the business has been historically loss making the directors consider that there is convincing evidence at 31 December 2022 and 31 December 2023 that the group will generate sufficient future taxable profits to utilise these deferred tax assets.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Battery sales
13,794,795
25,823,072
Inverter sales
8,925,547
3,895,350
Motor and fan sales
4,384,316
2,635,420
Project sales
2,368,159
1,836,205
29,472,817
34,190,047
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
15,317,360
25,269,134
Europe
12,329,457
7,359,540
Rest of World
1,826,000
1,561,373
29,472,817
34,190,047
4
Exceptional item
2023
2022
£
£
Expenditure
Additional contingent consideration payable
-
2,095,999
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
5
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses
64,933
94,295
Research and development costs
677,590
510,102
Depreciation of owned tangible fixed assets
1,170,482
1,193,422
Loss/(profit) on disposal of tangible fixed assets
23,649
(90,500)
Amortisation of intangible assets
3,577,162
4,146,713
Impairment of intangible assets
6,042,573
7,937,662
Operating lease charges
260,719
274,307
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,500
9,500
Audit of the financial statements of the company's subsidiaries
40,000
40,000
49,500
49,500
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration and management
70
69
4
4
Production and engineering
135
164
-
-
Directors
3
4
3
4
Total
208
237
7
8

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
11,503,610
12,571,313
442,319
1,135,955
Social security costs
1,287,615
1,505,397
57,584
161,384
Pension costs
615,610
583,924
-
0
-
0
13,406,835
14,660,634
499,903
1,297,339
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
2,041,557
595,452
Other interest on financial liabilities
928
1,589
Unwinding of discount on provisions
73,933
48,301
Total finance costs
2,116,418
645,342
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(1,443,545)
(981,745)
Deferred tax
Changes in tax rates
(28,050)
47,865
Adjustment in respect of prior periods
(208,709)
(54,316)
Tax losses carried forward
(447,797)
151,574
Total deferred tax
(684,556)
145,123
Total tax credit
(2,128,101)
(836,622)

The main rate of corporation tax increased to 25% from 1 April 2023 under the Finance Bill 2021. Deferred tax has been provided at the rates expected to be in place when the timing differences reverse. A marginal rate of 23.5% has been used for the year to 31 December 2023 when assessing the corporation tax charge as below.

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(23,418,760)
(29,686,766)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(5,503,409)
(5,640,486)
Tax effect of expenses that are not deductible in determining taxable profit
2,320,962
2,461,954
Tax effect of income not taxable in determining taxable profit
-
0
(2,248)
Unutilised tax losses carried forward
2,734,650
3,332,353
Adjustments in respect of prior years
(208,709)
(54,316)
Effect of change in corporation tax rate
(28,050)
47,866
Research and development tax credit
(1,443,545)
(981,745)
Taxation credit
(2,128,101)
(836,622)
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Intangible assets
11
6,042,573
7,937,662
Recognised in:
Administrative expenses
6,042,573
7,937,662
11
Intangible fixed assets
Group
Goodwill
Software
Trade names
Developed technology
Customer relationships
Total
£
£
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
28,998,068
26,527
110,000
6,220,000
19,169,699
54,524,294
Amortisation and impairment
At 1 January 2023
3,105,740
12,812
110,000
1,433,540
9,997,319
14,659,411
Amortisation charged for the year
1,933,205
6,583
-
0
888,572
748,802
3,577,162
Impairment losses
-
0
-
0
-
0
3,516,961
2,525,612
6,042,573
At 31 December 2023
5,038,945
19,395
110,000
5,839,073
13,271,733
24,279,146
Carrying amount
At 31 December 2023
23,959,123
7,132
-
0
380,927
5,897,966
30,245,148
At 31 December 2022
25,892,328
13,715
-
0
4,786,460
9,172,380
39,864,883
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
5,391,100
4,131,958
440,798
829,113
33,224
10,826,193
Additions
10,367
260,760
20,146
128,796
-
0
420,069
Disposals
-
0
(95,227)
-
0
-
0
-
0
(95,227)
At 31 December 2023
5,401,467
4,297,491
460,944
957,909
33,224
11,151,035
Depreciation and impairment
At 1 January 2023
266,758
885,204
34,808
395,859
10,305
1,592,934
Depreciation charged in the year
149,447
668,319
132,006
213,943
6,767
1,170,482
Eliminated in respect of disposals
-
0
(7,573)
-
0
-
0
-
0
(7,573)
At 31 December 2023
416,205
1,545,950
166,814
609,802
17,072
2,755,843
Carrying amount
At 31 December 2023
4,985,262
2,751,541
294,130
348,107
16,152
8,395,192
At 31 December 2022
5,124,342
3,246,754
405,990
433,254
22,919
9,233,259
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
41,795,928
67,842,454
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
67,842,454
Impairment
At 1 January 2023
-
Impairment losses
26,046,526
At 31 December 2023
26,046,526
Carrying amount
At 31 December 2023
41,795,928
At 31 December 2022
67,842,454
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Collingwood Solutions Ltd
1
Holding and investment company
Ordinary shares
100.00
Turntide Drives Ltd
1
Development of low carbon vehicle technology
Ordinary shares
100.00
Hyperdrive Innovation Holdings Ltd
1
Holding company
Ordinary shares
100.00
Hyperdrive Innovation Ltd
1
Development of low carbon vehicle technology
Ordinary shares
100.00
Hyperdrive Technologies Ltd
1
Dormant company
Ordinary shares
100.00
Avid Technology Group Ltd
1
Holding company
Ordinary shares
100.00
Avid Technology Ltd
1
Development of low carbon vehicle technology
Ordinary shares
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Turntide Drives Eighth Avenue, Team Valley Trading Estate, Gateshead, United Kingdom, NE11 0QA
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,022,224
1,090,253
-
-
Finished goods and goods for resale
4,749,499
3,083,131
-
0
-
0
5,771,723
4,173,384
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,952,287
5,924,945
-
0
-
0
Corporation tax recoverable
2,662,931
1,124,246
-
0
-
0
Amounts owed by group undertakings
-
-
29,399,715
18,984,261
Other debtors
504,368
314,090
-
0
61,399
Prepayments and accrued income
1,202,009
1,515,923
159,984
183,628
8,321,595
8,879,204
29,559,699
19,229,288
Amounts falling due after more than one year:
Deferred tax asset (note 21)
1,318,186
633,630
-
0
-
0
Total debtors
9,639,781
9,512,834
29,559,699
19,229,288
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
10,000
10,000
-
0
-
0
Trade creditors
3,415,738
3,626,964
45,348
127,813
Amounts owed to group undertakings
35,943,752
24,250,221
35,872,363
24,854,790
Corporation tax payable
9,162
9,162
-
0
-
0
Other taxation and social security
906,716
377,698
192,147
45,863
Deferred income
963,072
1,322,511
-
0
-
0
Other creditors
2,457,624
2,386,437
-
0
-
0
Accruals
1,378,188
1,399,787
(31,000)
35,561
45,084,252
33,382,780
36,078,858
25,064,027
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
21,667
31,667
-
0
-
0
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
31,667
41,667
-
0
-
0
Payable within one year
10,000
10,000
-
0
-
0
Payable after one year
21,667
31,667
-
0
-
0

Bank loans are unsecured and are repayable over 6 years in monthly instalments. Interest of 2.5% is charged on these loan amounts.

20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Battery disposal provision
3,888,556
3,855,216
-
-
Battery warranty provision
713,746
379,517
-
-
Rectification provision
533,232
485,139
-
-
5,135,534
4,719,872
-
-
Movements on provisions:
Battery disposal provision
Battery warranty provision
Rectification provision
Total
Group
£
£
£
£
Assumed liabilites upon acquisition
3,855,216
379,517
485,139
4,719,872
Additional provisions in the year
493,313
404,803
117,289
1,015,405
Utilisation of provision
(533,906)
(70,574)
(69,196)
(673,676)
Unwinding of discount
73,933
-
-
73,933
At 31 December 2023
3,888,556
713,746
533,232
5,135,534
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Provisions for liabilities
(Continued)
- 30 -

Battery disposal provision

The group is required under UK Laws and Regulations to take back, free of charge from the end user, waste batteries that it has previously supplied and then to ensure that all waste batteries taken back are delivered for treatment and recycling to an authorised battery treatment facility or to an approved exporter for treatment outside of the UK. The group makes provision for these estimated future costs of disposal. The provision involves a significant amount of estimation as it takes into account the expected life of the batteries, expected cost of disposal, and the number of batteries expected to be returned for disposal each year. One of the key assumptions used is that all batteries sold will be returned to the group for disposal at the end of their useful lives. To date there is insufficient history of battery returns to support any different returns assumption. As better evidence of returns becomes available in the future the provision may be amended accordingly. Additionally the group has assumed that it will use third parties to dispose of the batteries. As technologies develop it could be possible in the future that improved methods of disposal become available. This could impact the quantum of the provision in future years.

See also key judgements and sources of estimation uncertainty (note 2).

Battery warranty provision

The group provides warranties on sales of batteries for a 2 year period following completion of the sale, unless additional warranty periods are specifically agreed in line with the user application. The directors have estimated the likely cost of these warranties based on historic experience of warranty claims. The nature of the warranties mean that the amount and timing of payments is uncertain, however costs are expected to be realised within a period of not more than 2 years in most cases.

Rectification provision

The group has provided for estimated rectification costs on certain battery packs currently in the field. The nature of the work required means that the timing and likely cost is uncertain. The estimate costs include expected shipping and labour costs. The costs are expected to be incurred within the next 2 years.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
(111,087)
(140,294)
Tax losses
1,379,637
727,724
R&D/other timing differences
49,636
46,200
1,318,186
633,630
The company has no deferred tax assets or liabilities.
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Deferred taxation
(Continued)
- 31 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
(633,630)
-
Credit to profit or loss
(684,556)
-
Asset at 31 December 2023
(1,318,186)
-

The deferred tax asset set out above is not expected to reverse within 12 months as it relates to the utilisation of tax losses against future expected profits over the next 5 years. As such the asset has been classified as non-current on the balance sheet.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
615,610
583,924

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
68,586,084
68,586,084
68,586,084
68,586,084

The company has one class of ordinary shares which carry no right to fixed income.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
205,395
268,733
-
-
Between two and five years
464,799
454,156
-
-
In over five years
36,612
252,282
-
-
706,806
975,171
-
-
TURNTIDE TRANSPORT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
Controlling party

The company's ultimate controlling party is Turntide Technologies Inc, a company incorporated in the United States of America and its registered office is 1295 Forgewood Ave., Sunnyvale, CA 94089.

26
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Loss for the year after tax
(21,290,659)
(28,850,144)
Adjustments for:
Taxation credited
(2,128,101)
(836,622)
Finance costs
2,116,418
645,342
Loss/(gain) on disposal of tangible fixed assets
23,649
(90,500)
Amortisation and impairment of intangible assets
9,619,735
12,084,375
Depreciation and impairment of tangible fixed assets
1,170,482
1,193,422
Increase in provisions
341,729
1,450,397
Movements in working capital:
(Increase)/decrease in stocks
(1,598,339)
805,398
Decrease/(increase) in debtors
2,096,294
(2,081,948)
Increase in creditors
12,060,911
15,041,203
Decrease in deferred income
(359,439)
(2,413,773)
Cash generated from/(absorbed by) operations
2,052,680
(3,052,850)
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,438,193
(451,009)
1,987,184
Borrowings excluding overdrafts
(41,667)
10,000
(31,667)
2,396,526
(441,009)
1,955,517
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