REGISTERED NUMBER: 05594330 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 December 2024

for

The Discreteheat Company Limited

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

110,980

114,248

Tangible assets

5

177,462

142,497

288,442

256,745

CURRENT ASSETS

Stocks

143,552

84,802

Debtors

6

85,537

184,362

Cash at bank

709

53,352

229,798

322,516

CREDITORS

Amounts falling due within one year

7

493,734

286,577

NET CURRENT (LIABILITIES)/ASSETS

(263,936

)

35,939

TOTAL ASSETS LESS CURRENT LIABILITIES

24,506

292,684

CREDITORS

Amounts falling due after more than one year

8

764,078

514,195

NET LIABILITIES

(739,572

)

(221,511

)

CAPITAL AND RESERVES

Called up share capital

106

106

Share premium

95

95

Retained earnings

(739,773

)

(221,712

)

SHAREHOLDERS' FUNDS

(739,572

)

(221,511

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2025 and were signed on its behalf by:

MJ Wadsworth - Director

1.	STATUTORY INFORMATION

The Discreteheat Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

05594330

Registered office:

Bollin Lodge

The Village

Prestbury

SK10 4DG

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue recognition

Turnover represents amounts receivable for goods and services provided in the normal course of business, net of trade discounts, VAT and other sales related taxes. Income is recognised when goods have been delivered to customers such that the risks and rewards of ownership have transferred to them.

Patents and other intangible assets

Patents and other intangible assets are included at cost and amortised in equal annual instalments over their estimated useful economic life. Provision is made for any impairment.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land and buildings

-

in accordance with the property

Plant and machinery etc

-

25% on reducing balance

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 19 (2023 - 23 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2024

266,263

Additions

10,574

At 31 December 2024

276,837

AMORTISATION

At 1 January 2024

152,015

Charge for year

13,842

At 31 December 2024

165,857

NET BOOK VALUE

At 31 December 2024

110,980

At 31 December 2023

114,248

Intangible assets represent patents (UK and elsewhere) held by the company in relation to the products sold.

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2024

41,996

349,478

391,474

Additions

-

97,731

97,731

Disposals

-

(22,896

)

(22,896

)

At 31 December 2024

41,996

424,313

466,309

DEPRECIATION

At 1 January 2024

14,677

234,300

248,977

Charge for year

5,464

51,868

57,332

Eliminated on disposal

-

(17,462

)

(17,462

)

At 31 December 2024

20,141

268,706

288,847

NET BOOK VALUE

At 31 December 2024

21,855

155,607

177,462

At 31 December 2023

27,319

115,178

142,497

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 January 2024

163,043

Additions

97,005

Disposals

(22,896

)

At 31 December 2024

237,152

DEPRECIATION

At 1 January 2024

56,585

Charge for year

49,507

Eliminated on disposal

(17,462

)

At 31 December 2024

88,630

NET BOOK VALUE

At 31 December 2024

148,522

At 31 December 2023

106,458

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade debtors

73,339

174,862

Other debtors

12,198

9,500

85,537

184,362

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Bank loans and overdrafts

152,492

19,200

Hire purchase contracts

43,044

31,200

Trade creditors

168,927

176,421

Taxation and social security

56,536

36,316

Other creditors

72,735

23,440

493,734

286,577

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.24

31.12.23

£

£

Bank loans

176,023

27,200

Hire purchase contracts

109,725

66,425

Other creditors

478,330

420,570

764,078

514,195

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.24

31.12.23

£

£

Bank overdraft

85,859

-

Hire purchase contracts

152,769

97,625

238,628

97,625

The bank overdraft is secured by a fixed and floating charge over the company's assets. Hire purchase creditors are secured over the asset to which the debt relates.

10.	OTHER FINANCIAL COMMITMENTS

The company has entered into a lease on premises it occupies. The lease has a five year term but is cancellable with 12 months notice at an annual rent of £39,000.

11.	CREDITORS DUE AFTER MORE THAN ONE YEAR

Included with creditors due after more than one year is an amount of £478,330 (2023 - £420,570)

which represents funding from key management personnel, shareholders and related parties and has no fixed repayment date. The funders have pledged to support the company in its continued research and development program.