EMBECOSM LIMITED


Director	BENNETT, Jeremy Peter, Dr


Company Secretary	BENNETT, Jennifer Clare


Registered Address	22 London Road
	Southampton
	SO15 2AF


Registered Number	06577021 (England and Wales)

Notes to the Financial Statements
for the year ended 31 December 2024

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Statement of compliance
	The financial statements have been prepared in accordance with the Companies Act 2006 and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland including Section 1A Small Entities.

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the financial reporting standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

	Employee benefits
	Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

Employee benefits

Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Tangible fixed assets and depreciation
	All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:

Tangible fixed assets and depreciation

All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:


		Straight line (years)
	Plant and machinery	3
	Fixtures and fittings	4
	Office Equipment	5

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.

Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Related parties
	For the purposes of these financial statements, a related party could be a person or an entity. Careful consideration is given to the definition of a related party to ensure that all related party relationships, transactions and balances are identified.

2.	Staff Costs
	In 2024 relevant Engineering staff costs are being split across direct costs and overheads. In 2023 they were all presented in overheads. (£562,135 direct costs 2024 £761,968 included in overheads in 2023).

3.	Average number of employees


		2024		2023
	Average number of employees during the year	10		12

4.	Deferred tax
	Increases in the UK Corporation tax rate from 19% to 25% (19% effective from 1 April 2017, and 25% effective from 1 April 2023) have been substantively enacted. This will impact the company's future tax charge accordingly. The value of the deferred tax assets at the balance sheet date has been calculated using the applicable rate when the asset is expected to be realised. Deferred tax balance as at 31.12.24 £6,046 (2023 1,919)

Deferred tax

Increases in the UK Corporation tax rate from 19% to 25% (19% effective from 1 April 2017, and 25% effective from 1 April 2023) have been substantively enacted. This will impact the company's future tax charge accordingly. The value of the deferred tax assets at the balance sheet date has been calculated using the applicable rate when the asset is expected to be realised.
Deferred tax balance as at 31.12.24 £6,046  (2023 1,919)

5.	Tangible fixed assets

	Plant & machinery	Fixtures & fittings	Total
	£	£	£
Cost or valuation
At 01 January 24	84,397	7,525	91,922
Additions	6,006	16,207	22,213
At 31 December 24	90,403	23,732	114,135
Depreciation and impairment
At 01 January 24	77,057	7,188	84,245
Charge for year	4,010	1,698	5,708
Revaluation surplus	-	(1)	(1)
At 31 December 24	81,067	8,885	89,952
Net book value
At 31 December 24	9,336	14,847	24,183
At 31 December 23	7,340	337	7,677

6.	Fixed asset investments

	Investments in groups¹	Total
	£	£
Cost or valuation
At 01 January 24	28,945	28,945
At 31 December 24	28,945	28,945
Net book value
At 31 December 24	28,945	28,945
At 31 December 23	28,945	28,945

	Notes
	¹Investments in group undertakings and participating interests

7.	Debtors: amounts due within one year

	2024	2023
	£	£
Trade debtors / trade receivables	203,442	278,506
Other debtors	355,752	300,787
Prepayments and accrued income	54,672	50,149
Total	613,866	629,442


	Included within other debtors are intercompany payments due of £352,761 (2023 £300,787)

8.	Creditors: amounts due within one year

	2024	2023
	£	£
Trade creditors / trade payables	11,610	8,296
Taxation and social security	19,473	88,094
Other creditors	127,527	150,596
Accrued liabilities and deferred income	14,382	25,706
Total	172,992	272,692


	Included in the amount of other creditors due in year is a Directors Loan of £124,336 (2023 £125,027). This is non interest bearing and repayable upon demand. Included in the amount of other creditors due in one year are intercompany payments of £Nil (2023 £22,288)

9.	Provisions for liabilities

	2024	2023
	£	£
Net deferred tax liability (asset)	6,046	1,919
Total	6,046	1,919

10.	Operating lease commitments
	At 31 December 2024 the company had the following future minimum lease payments under non-cancellable operating leases for each of the following periods: 2024 2023 Not later than one year £25,000 £21,542 Later than one year and not later than five years £97,917 -

11.	Related party transactions
	All related party transactions during the year were undertaken with the following subsidiaries, they were all at arms length and commercial in nature. Embecosm GMBH Embecosm SAS

12.	Parent-subsidiary relationships
	Embecosm Limited wholly owns the following subsidiaries: Embecosm GMBH (a company incorporated in Germany). Embecsom SAS (a company incorporated in France). The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the Company and its Subsidiaries comprise a small group.

	Notes	2024		2023
		£	£	£	£
Fixed assets
Tangible assets	5		24,183		7,677
Investments	6		28,945		28,945
			53,128		36,622
Current assets
Debtors	7	613,866		629,442
Cash at bank and on hand		107,235		191,170
		721,101		820,612
Creditors amounts falling due within one year	8	(172,992)		(272,692)
Net current assets (liabilities)			548,109		547,920
Total assets less current liabilities			601,237		584,542
Provisions for liabilities	9		(6,046)		(1,919)
Net assets			595,191		582,623
Capital and reserves
Called up share capital			1,504		1,504
Profit and loss account			593,687		581,119
Shareholders' funds			595,191		582,623