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| 2. |
Summary of Significant Accounting Policies |
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
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Statement of compliance |
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The financial statements of the company for the year ended 31 July 2025 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
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Basis of preparation |
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The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. |
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Turnover |
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Turnover represents the total invoice value, excluding value added tax, of sales made during the year. |
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Transition to FRS 102 |
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On transition to FRS 102, transitional adjustments were made to the opening equity balances to reclassify the revaluation surplus in relation to the property as part of the income statement profit attributable to owners of the company. |
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Intangible assets |
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Intangible assets are valued at cost less accumulated amortisation. |
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Property, plant and equipment and depreciation |
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Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
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Land and buildings freehold |
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See below for full description |
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Research Equipment |
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See below for full description |
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Fixtures Fittings and Equipment |
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15% Reducing Balance |
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Plant and Machinery |
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20% Straight line |
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Integral features |
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10% Straight line |
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The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. Research Equipment The research equipment was revalued by the directors as at 31 July 2021 based upon their judgement of the market value at that date. The directors anticipate that the equipment will have a useful life of five years, that after five years the market value of the equipment will be £nil and that the value of the equipment will fall steadily. Land and buildings The land and buildings were professionally valued by Montgomery Finlay estate agents at 31 July 2021. |
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Stocks |
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Stocks are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
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Trade and other debtors |
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Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. |
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Borrowing costs |
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Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. |
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Provisions |
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Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
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Trade and other creditors |
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Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. |
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Taxation and deferred taxation |
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Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Government grants |
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Capital grants received and receivable are treated as deferred income and amortised to the Income Statement annually over the useful economic life of the asset to which it relates. Revenue grants are credited to the Income Statement when received. |
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Foreign currencies |
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Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement. |
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Research and development |
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Development expenditure is written off in the same year unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period from which the company is expected to benefit. |
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Ordinary share capital |
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The ordinary share capital of the company is presented as equity. |
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| 11. |
Related party transactions |
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Balance |
Movement |
Balance |
Maximum |
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2025 |
in year |
2024 |
in year |
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£ |
£ |
£ |
£ |
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Devine and Associates Drummee Ltd |
60,000 |
- |
60,000 |
60,000 |
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Devine and Associates Derrinumera Ltd |
20,520 |
595 |
19,925 |
19,925 |
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Lackaghboy Generation Ltd |
1,200 |
(16) |
1,216 |
2,550 |
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Devine and Associates Rathroeen Ltd |
1,826 |
320 |
1,506 |
1,506 |
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EcoFert Ltd |
6,719 |
6,294 |
425 |
425 |
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───────── |
───────── |
───────── |
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90,265 |
7,193 |
83,072 |
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The following amounts are due to other connected parties: |
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2025 |
2024 |
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£ |
£ |
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CoTwo Limited |
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484,232 |
442,232 |
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Net balances with other connected parties: |
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2025 |
2024 |
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£ |
£ |
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Devine and Associates Drummee Ltd |
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60,000 |
60,000 |
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Devine and Associates Derrinumera Ltd |
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20,520 |
19,925 |
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Lackaghboy Generation Ltd |
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1,200 |
1,216 |
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Devine and Associates Rathroeen Ltd |
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1,826 |
1,506 |
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CoTwo Limited |
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(484,232) |
(442,232) |
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EcoFert Ltd |
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6,719 |
425 |
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───────── |
───────── |
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(393,967) |
(359,160) |
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