Company registration number SC409777 (Scotland)
SOFANT TECHNOLOGIES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
PAGES FOR FILING WITH REGISTRAR
SOFANT TECHNOLOGIES LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
SOFANT TECHNOLOGIES LTD
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 1 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
3
13,949,847
11,746,848
Tangible assets
4
351,976
411,935
14,301,823
12,158,783
Current assets
Debtors
5
1,181,161
838,684
Cash at bank and in hand
292
1,147,380
1,181,453
1,986,064
Creditors: amounts falling due within one year
6
(4,629,477)
(4,161,845)
Net current liabilities
(3,448,024)
(2,175,781)
Total assets less current liabilities
10,853,799
9,983,002
Creditors: amounts falling due after more than one year
7
(392,064)
(404,174)
Provisions for liabilities
(478,792)
(371,057)
Net assets
9,982,943
9,207,771
Capital and reserves
Called up share capital
9
1,498
1,328
Share premium account
16,472,142
13,273,207
Profit and loss reserves
(6,490,697)
(4,066,764)
Total equity
9,982,943
9,207,771
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
SOFANT TECHNOLOGIES LTD
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2025
31 March 2025
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 3 June 2025 and are signed on its behalf by:
D M WITHER
D M Wither
Director
Company registration number SC409777 (Scotland)
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
1
Accounting policies
Company information
Sofant Technologies Ltd is a private company limited by shares incorporated in Scotland. The registered office is Suite 2, Ground Floor Orchard Brae House, 30 Queensferry Road, Edinburgh, Scotland, EH4 2HS.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The directortrues, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. At the balance sheet date, the company had net current liabilities of £3,448,024 (2024 - £2,175,781). The directors have confirmed that they will continue to support the company. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
1.3
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
1.4
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.
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:
Patents
Evenly until the expiry of each Patent's life
Development costs
20 years straight line
Licences
20% straight line
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 4 -
1.5
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
33% straight line
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Office equipment
25% 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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 5 -
1.7
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial assets, which include prepaid expenses and accrued income, taxes receivable and cash at bank, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Basic financial liabilities, which include trade creditors, accrued expenses and taxes due are initially recognised at the transaction price, unless the arrangement constitutes afinancing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
At each reporting date the company assesses whether there is objective evidence that any financial asset has been impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due. The amount of the provisionis recognised immediately in profit or loss.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
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 company’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 when the company has 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.
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 6 -
1.10
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.
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.
1.11
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using an appropriate pricing model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Total
25
22
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 7 -
3
Intangible fixed assets
Patents
Development costs
Licences
Total
£
£
£
£
Cost
At 1 April 2024
411,541
11,967,860
50,000
12,429,401
Additions - internally developed
57,530
2,749,347
2,806,877
At 31 March 2025
469,071
14,717,207
50,000
15,236,278
Amortisation and impairment
At 1 April 2024
32,553
600,000
50,000
682,553
Amortisation charged for the year
3,878
600,000
603,878
At 31 March 2025
36,431
1,200,000
50,000
1,286,431
Carrying amount
At 31 March 2025
432,640
13,517,207
13,949,847
At 31 March 2024
378,988
11,367,860
11,746,848
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Office equipment
Total
£
£
£
£
£
Cost
At 1 April 2024
279,724
298,935
12,793
92,040
683,492
Additions
4,191
137,644
7,307
149,142
At 31 March 2025
283,915
436,579
12,793
99,347
832,634
Depreciation and impairment
At 1 April 2024
15,540
193,506
6,911
55,600
271,557
Depreciation charged in the year
94,289
88,577
2,797
23,438
209,101
At 31 March 2025
109,829
282,083
9,708
79,038
480,658
Carrying amount
At 31 March 2025
174,086
154,496
3,085
20,309
351,976
At 31 March 2024
264,184
105,429
5,882
36,440
411,935
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
5
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
120,000
Corporation tax recoverable
884,290
411,676
Other debtors
176,871
427,008
1,181,161
838,684
6
Creditors: amounts falling due within one year
2025
2024
£
£
Bank overdraft
1,026
Convertible loans
2,858,501
620,000
Trade creditors
882,749
1,867,750
Taxation and social security
338,820
199,155
Other creditors
548,381
1,474,940
4,629,477
4,161,845
7
Creditors: amounts falling due after more than one year
2025
2024
£
£
Other creditors
392,064
404,174
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
8
Share-based payments
Certain employees had been granted options to subscribe for shares in the company under share option schemes as follows:
The unapproved options outstanding granted on 14 May 2018, 5 February 2020, 22 March 2020, 12 May 2021, 24 May 2021,11 April 2022 and 12 April 2023 at option prices of £6.22, £15.52, £18.57 and £28.80, are shown below:
| |
Option exercise period May 2018 to May 2028 | |
Option exercise period March 2020 to March 2030 | |
Option exercise period May 2021 to May 2031 | |
Option exercise period April 2022 to April 2032 Option exercise period April 2023 to April 2033 | |
| |
| |
| |
The EMI options outstanding, granted on 21 August 2018, 22 March 2020, 1 June 2021, 12 April 2023, 15 March 2024 and 11 October 2024 at option prices of £5.94, £13.19, £16.71, £28.80, £32.40 and £34.02 are shown below:
| |
Option exercise period August 2018 to August 2028 | |
Option exercise period March 2020 to March 2030 | |
Option exercise period June 2021 to June 2031 | |
Option exercise period July 2022 to July 2032 | |
Option exercise period April 2023 to April 2033 Option exercise period March 2024 to March 2034 Option exercise period October 2024 to October 2034 | |
| |
| |
| |
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
8
Share-based payments
(Continued)
- 10 -
The estimated fair values were calculated by applying the Black-Scholes option pricing model. The model inputs were:
2025
Share price at grant date
£34.02
Exercise price
£34.02
Expected volatility
70%
Expected life
10 years
Risk free rate
0.395%
Expected dividends yields
0%
The estimated fair value of each share option granted is as follows:
Details of the number and weighted average exercise prices (WAEP) of share options during the period are as follows:
| | |
| | | | |
Outstanding at 1 April 2024 | | | | |
Granted during the period | | | | |
Exercised during the period | | | | |
Expired during the period | | | | |
| | | | |
Outstanding at 31 March 2025 | | | | |
| | | | |
The total expense recognised in profit or loss for the periods as follows:
| | |
| | |
Equity-settled share-based payments | | |
SOFANT TECHNOLOGIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
9
Called up share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.01p each each
132,782
132,782
1,498
1,328
During the year, 17,003 ordinary shares of 0.01p each were issued for a total consideration of £3,199,105.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2025
2024
£
£
798,865
991,417