Company registration number SC419797 (Scotland)
Fraunhofer UK Research Limited
financial statements
for the year ended 31 December 2024
Pages for filing with registrar
Fraunhofer UK Research Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 8
Fraunhofer UK Research Limited
Balance sheet
as at 31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
36,037
20,334
Tangible assets
5
2,307,488
1,641,788
2,343,525
1,662,122
Current assets
Debtors
6
3,193,993
2,999,041
Cash at bank and in hand
3,391,501
2,769,345
6,585,494
5,768,386
Creditors: amounts falling due within one year
7
(958,694)
(1,017,148)
Net current assets
5,626,800
4,751,238
Total assets less current liabilities
7,970,325
6,413,360
Creditors: amounts falling due after more than one year
8
(7,970,325)
(6,413,360)
Net assets
Reserves
11
-
-
The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 May 2025 and are signed on its behalf by:
S Andrews
Director
Company registration number SC419797 (Scotland)
Fraunhofer UK Research Limited
Notes to the financial statements
for the year ended 31 December 2024
- 2 -
1
Accounting policies
Company information
Fraunhofer UK Research Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Technology and Innovation Centre, Level 5, 99 George Street, Glasgow, G1 1RD.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the financial projections, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from rising input costs and the economic conditions in the UK. This analysis also considers the effectiveness of available measures to assist in mitigating the impact. true
Based on these assessments and having regard to the resources available to the company, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Income and expenditure
Turnover
Turnover represents income from contracts to provide research and development services and from specific grant funded research projects.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Grant income
Grants of a revenue nature are accounted for under the accruals model with grants recognised in the Statement of Comprehensive Income on a systematic basis in the same period as the related expenditure. Grants received in advance of the income being recognised in the Statement of Comprehensive Income are included in creditors as deferred income. Grant income recognised in the Statement of Comprehensive Income but not received at the year end is included in debtors as accrued income.
Fraunhofer UK Research Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 3 -
Contracts for services
Turnover from a contract for services is recognised in the period in which the services are provided in accordance with the stage completion of the contract when all of the following conditions are satisfied :
- the amount of turnover can be measured reliably;
- it is probably that the Company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.
1.4
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.
1.5
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:
Software costs
3 years straight line
Intellectual property
5 years straight line
1.6
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 improvements
3 - 5 years straight line
Plant and machinery
5 - 10 years straight line
Fixtures and fittings
5 years straight line
Computer equipment
3 years 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 surplus or deficit.
1.7
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.
Fraunhofer UK Research Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 4 -
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 surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
Classification of financial liabilities
Financial liabilities 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Fraunhofer UK Research Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 5 -
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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 leases asset are consumed.
1.13
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.14
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
55
48
3
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
164,640
153,485
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Fraunhofer UK Research Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 6 -
4
Intangible fixed assets
Other
£
Cost
At 1 January 2024
224,141
Additions
38,159
At 31 December 2024
262,300
Amortisation and impairment
At 1 January 2024
203,807
Amortisation charged for the year
22,456
At 31 December 2024
226,263
Carrying amount
At 31 December 2024
36,037
At 31 December 2023
20,334
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2024
217,777
4,973,137
5,190,914
Additions
1,363,993
1,363,993
At 31 December 2024
217,777
6,337,130
6,554,907
Depreciation and impairment
At 1 January 2024
182,008
3,367,118
3,549,126
Depreciation charged in the year
8,671
689,622
698,293
At 31 December 2024
190,679
4,056,740
4,247,419
Carrying amount
At 31 December 2024
27,098
2,280,390
2,307,488
At 31 December 2023
35,769
1,606,019
1,641,788
Fraunhofer UK Research Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 7 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
787,086
459,600
Corporation tax recoverable
848,294
629,336
Other debtors
1,558,613
1,910,105
3,193,993
2,999,041
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
314,953
435,152
Taxation and social security
163,547
123,500
Other creditors
480,194
458,496
958,694
1,017,148
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
7,970,325
6,413,360
9
Core funding grants
2024
2023
£
£
Capital and revenue grants brought forward
6,413,360
6,273,564
Capital and revenue grants received in the year
3,209,530
1,851,304
Released to the Statement of Comprehensive Income
(1,652,565)
(1,711,508)
7,970,325
6,413,360
10
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
733,979
620,101
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Fraunhofer UK Research Limited
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 8 -
11
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Blair Davidson
Statutory Auditor:
Henderson Loggie LLP
Date of audit report:
27 May 2025
13
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:
2024
2023
£
£
930,556
523,075
14
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
755,955
7,024
15
Related party transactions
At the year end there was £1,714,702 (2023 - £1,825,784) outstanding in relation to deferred funding in respect of core funding grants received from Fraunhofer Gesellschaft, the Company's controlling party.
During the year, funds of £282,754 (2023 - £551,304) were received from Fraunhofer Gesellschaft and £393,836 (2023 - £669,057) was released to the profit and loss account in the current year.
16
Parent company
The directors consider the controlling party to be Fraunhofer Gesellschaft, a company incorporated in Germany.
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