Company registration number 06057388 (England and Wales)
RUN FLAT SYSTEMS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
RUN FLAT SYSTEMS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
RUN FLAT SYSTEMS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
770,846
864,758
Tangible assets
4
197,540
283,433
968,386
1,148,191
Current assets
Stocks
247,870
279,952
Debtors
5
115,418
135,797
Cash at bank and in hand
116,941
382,592
480,229
798,341
Creditors: amounts falling due within one year
6
(1,037,167)
(1,448,058)
Net current liabilities
(556,938)
(649,717)
Total assets less current liabilities
411,448
498,474
Creditors: amounts falling due after more than one year
7
(81,956)
(118,592)
Net assets
329,492
379,882
Capital and reserves
Called up share capital
8
663
471
Share premium account
7,401,724
6,300,724
Profit and loss reserves
(7,072,895)
(5,921,313)
Total equity
329,492
379,882
RUN FLAT SYSTEMS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
31 December 2024
- 2 -

For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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.

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.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
R Cleland
Director
Company registration number 06057388 (England and Wales)
RUN FLAT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
1
Accounting policies
Company information

Run Flat Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3a Aviator Court, First Avenue, Auckley, Doncaster, DN9 3QZ.

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 company is financed through equity fund raising and shareholder loans whilst the company is in its development phase. The shareholders are continuing to support the company financially until it reaches certain targets and milestones that will allow it to secure further investment. The board are optimistic about the sales pipeline and continue to explore further funding rounds to progress the business. On this basis the directors' adopt the going concern basis of preparation for the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

1.4
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.

 

Directly attributable patent renewal costs are capitalised during the development stage of internally generated intangible assets.

RUN FLAT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
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.

Patents
20 years Straight line
Development costs
5 years Straight line
1.6
Tangible fixed assets

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

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

Leasehold improvements
25% Straight line
Plant and machinery
25% Straight line
Computer equipment
25% Straight line
Motor vehicles
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.

1.7
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).

1.8
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.

1.9
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.

1.10
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.

1.11
Taxation

The tax expense represents the tax currently payable.

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.

RUN FLAT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 5 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.13
Retirement benefits

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

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

1.15
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.

1.16
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
10
8
3
Intangible fixed assets
Patents
Development costs
Total
£
£
£
Cost
At 1 January 2024
594,076
1,244,834
1,838,910
Additions
51,261
-
0
51,261
At 31 December 2024
645,337
1,244,834
1,890,171
Amortisation
At 1 January 2024
184,883
789,269
974,152
Amortisation charged for the year
31,282
113,891
145,173
At 31 December 2024
216,165
903,160
1,119,325
Carrying amount
At 31 December 2024
429,172
341,674
770,846
At 31 December 2023
409,193
455,565
864,758
RUN FLAT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
4
Tangible fixed assets
Leasehold improvements
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
3,256
595,069
76,019
29,445
703,789
Disposals
-
0
(82,328)
-
0
-
0
(82,328)
At 31 December 2024
3,256
512,741
76,019
29,445
621,461
Depreciation
At 1 January 2024
3,256
320,026
67,629
29,445
420,356
Depreciation charged in the year
-
0
80,669
5,224
-
0
85,893
Eliminated in respect of disposals
-
0
(82,328)
-
0
-
0
(82,328)
At 31 December 2024
3,256
318,367
72,853
29,445
423,921
Carrying amount
At 31 December 2024
-
0
194,374
3,166
-
0
197,540
At 31 December 2023
-
0
275,043
8,390
-
0
283,433
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,477
35,229
Corporation tax recoverable
58,179
57,371
Other debtors
52,762
43,197
115,418
135,797
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
11,111
11,111
Trade creditors
253,199
244,017
Taxation and social security
6,882
9,825
Other creditors
765,975
1,183,105
1,037,167
1,448,058

Included in trade creditors and other creditors are amounts totalling £824,489 (2023: £709,497) owed to directors/shareholders for unpaid fees and loans. No interest is charged on the balances and these are repayable on demand.

 

Included in other creditors are hire purchase liabilities totalling £25,525 (2023: £29,184). These are secured on the assets to which they relate.

RUN FLAT SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
13,889
25,000
Other creditors
68,067
93,592
81,956
118,592

Included in other creditors are hire purchase liabilities totalling £68,067 (2023: £93,592). These are secured on the assets to which they relate.

8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 0.001p each
662,984
412,675
663
471

On 5 February 2024, 102,819 £0.001 Ordinary Shares were issued at a price of £5.75 per share.

 

On 30 September 2024, 71,301 £0.001 Ordinary Shares were issued at a price of £5.75 per share.

 

On 22 October 2024, 17,391 £0.001 Ordinary Shares were issued at a price of £5.75 per share.

 

All shares issued in the year were fully paid.

9
Operating lease commitments

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

2024
2023
£
£
10,760
13,084
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