Intelligent Drilling Tools Ltd Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 06767366

Intelligent Drilling Tools Ltd

Filleted Unaudited Financial Statements

31 December 2024

Intelligent Drilling Tools Ltd

Financial Statements

Year ended 31 December 2024

Contents	Pages

Chartered accountants report to the board of directors on the preparation of the unaudited statutory financial statements	1

Statement of financial position	2 to 3

Notes to the financial statements	4 to 8

Intelligent Drilling Tools Ltd

Chartered Accountants Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of Intelligent Drilling Tools Ltd

Year ended 31 December 2024

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Intelligent Drilling Tools Ltd for the year ended 31 December 2024, which comprise the statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of Intelligent Drilling Tools Ltd, as a body, in accordance with the terms of our engagement letter dated 2 July 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Intelligent Drilling Tools Ltd and state those matters that we have agreed to state to you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Intelligent Drilling Tools Ltd and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Intelligent Drilling Tools Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Intelligent Drilling Tools Ltd. You consider that Intelligent Drilling Tools Ltd is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of Intelligent Drilling Tools Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

HEBBLETHWAITES Chartered Accountants

2 Westbrook Court Sharrow Vale Road Sheffield S11 8YZ

23 December 2025

Intelligent Drilling Tools Ltd

Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	4	636,103	195,654
Investments	5	74,992	74,992
		---------	---------
		711,095	270,646

Current assets

Stocks		1,696	–
Debtors	6	168,741	43,892
Cash at bank and in hand		67,356	1,093,531
		---------	------------
		237,793	1,137,423

Creditors: amounts falling due within one year	7	58,963	269,964
		---------	------------
Net current assets		178,830	867,459
		---------	------------
Total assets less current liabilities		889,925	1,138,105
		---------	------------
Net assets		889,925	1,138,105
		---------	------------

Intelligent Drilling Tools Ltd

Statement of Financial Position (continued)

31 December 2024

	2024	2023
Note	£	£

Capital and reserves

Called up share capital	40,816	40,816
Share premium account	1,555,184	1,555,184
Profit and loss account	( 706,075)	( 457,895)
	------------	------------
Shareholders funds	889,925	1,138,105
	------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

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

Directors' responsibilities:

- 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 Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 23 December 2025 , and are signed on behalf of the board by:

Mr M A Russell

Director

Company registration number: 06767366

Intelligent Drilling Tools Ltd

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 2 Westbrook Court, Sharrow Vale Road, Sheffield, S11 8YZ.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Patent costs

Patent costs incurred during the period have been fully charged as against revenue generated. The costs expended in this regard are seen as being for longer term protection in terms of the company products and assets to which they relate. However, given the inherent uncertainty associated with delivering new products to the market place, the directors have taken the prudent view of writing off all such costs as incurred until and unless there is certainty of a commercial return on the subject products. During the year, the company has progressed positively in terms of product development and protection towards commercial realisation.

Stock of development tools

The company holds a stock of development and prototype tools in relation to which costs have been incurred in terms of the production of these subject tools.

In earlier years, given the then more fundamental uncertainty in relation to the potential commercial return and future profit realisation arising from the subject tools, all of the development costs were charged as expenses in the financial statements. This policy was as against a background of the tools in the course of development having no intrinsic value with the directors therefore taking the prudent view of not recognising any capital carrying value at the earlier period end. In effect, the costs of production and development were written off as incurred.

As the subject tools are now at a much more mature and commercially viable stage, the costs incurred in the manufacture and development of the tools in the latest year have been capitalised as fixed assets. The company business model is for the tools to now generate revenue going forward, hence the inclusion of costs as fixed assets in the closing Statement of Financial Position.

The company has inevitably incurred substantial costs in order to create this suite of tools. The unique nature of the tools and the commercial efficiencies they offer to users are such as to project significant revenue returns to Intelligent Drilling Tools Ltd going forward. As commercial realisation is now in clear focus, the decision has been taken to capitalise the tools as fixed assets with the company business model being based on the rental of the tools for commercial run operations by customers.

The tools will be subject to regular and routine maintenance and servicing to ensure their ongoing capability and revenue earning capacity, with such routine costs being charged as such in the company accounts. Given the robust engineering of the tools and the maintenance policy, the expectation is that the tools will enjoy an extended useful life of ongoing revenue generation.

Once revenue is generated, the carrying value of the tools will be re-assessed by the directors on an ongoing basis and any appropriate depreciation charge or revaluation surplus will be accounted for in the financial statements.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. This policy sits alongside that related to the stock of development tools as outlined above.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Motor vehicles	-	25% straight line
Equipment	-	25% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

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 instruments 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. Debt instruments are subsequently measured at amortised cost.

4. Tangible assets

	Commercial tools	Motor vehicles	Equipment	Total
	£	£	£	£
Cost
At 1 January 2024	195,654	–	–	195,654
Additions	403,741	44,846	1,320	449,907
	---------	--------	-------	---------
At 31 December 2024	599,395	44,846	1,320	645,561
	---------	--------	-------	---------
Depreciation
At 1 January 2024	–	–	–	–
Charge for the year	–	9,343	115	9,458
	---------	--------	-------	---------
At 31 December 2024	–	9,343	115	9,458
	---------	--------	-------	---------
Carrying amount
At 31 December 2024	599,395	35,503	1,205	636,103
	---------	--------	-------	---------
At 31 December 2023	195,654	–	–	195,654
	---------	--------	-------	---------

The above tangible assets comprise tools developed and manufactured by the company for future commercial return. Once the tools become revenue generating, their carrying value will be re-assessed on an ongoing basis and any depreciation, impairment or upward revaluation recognised in the financial statements.

5. Investments

	Shares in group undertakings
	£
Cost
At 1 January 2024 and 31 December 2024	74,992
	--------
Impairment
At 1 January 2024 and 31 December 2024	–
	--------

Carrying amount
At 31 December 2024	74,992
	--------
At 31 December 2023	74,992
	--------

The company owns 100% of the share capital of Idt-Innovar AS, a company incorporated in Norway and operating in the energy services industry.

6. Debtors

	2024	2023
	£	£
Trade debtors	–	40,165
Amounts owed by group undertakings and undertakings in which the company has a participating interest	147,410	–
Other debtors	21,331	3,727
	---------	--------
	168,741	43,892
	---------	--------

7. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	49,642	22,964
Amounts owed to group undertakings and undertakings in which the company has a participating interest	–	245,000
Other creditors	9,321	2,000
	--------	---------
	58,963	269,964
	--------	---------

8. Related party transactions

At the start of the year, the company was indebted to Cutting & Wear Resistant Developments Limited, by way of loan in the sum of £245,000, which loan has been fully repaid, during the year, free of any interest element, leaving no outstanding balance as at the end of the year. At the year end date, the subsidiary company Idt-Innovar AS was indebted to the company, by way of loan, in the sum of £147,410 (2023: £Nil) in respect of which interest is not being charged and there are no formal repayment terms. During the year, consultancy services were provided by GRH Welltech Ltd, being a company with common directorship and shareholding, to this company, involving charges amounting to £36,800 (2023: £Nil).