Registered number:
04401901
PLOUGHSHARE INNOVATIONS LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2019
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PLOUGHSHARE INNOVATIONS LIMITED
REGISTERED NUMBER:
04401901
BALANCE SHEET
AS AT
31 MARCH 2019
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Debtors: amounts falling due within one year
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Creditors
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amounts falling due within one year
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Total assets less current liabilities
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Creditors
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amounts falling due after more than one year
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Non distributable reserve
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The
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 the provisions of FRS 102 Section 1A - small entities.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................
J M Kirby
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The notes on pages 2 to 9 form part of these financial statements.
Page 1
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PLOUGHSHARE INNOVATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
Plougshare Innovations Ltd is a private Company limited by shares incorporated in England and Wales. The principle place of trade is Porton Science Park, Bybrook Road, Porton Down, Wiltshire, SP4 0BF.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis, which the directors believe to be appropriate for the following reasons. The Company is involved in the development and exploitation of novel technologies and is in the early stages of its lifecycle. The appropriateness of the going concern basis of preparation is dependent on the Company receiving continued support and funding from Dstl. The directors have prepared projected cash flow information for the period to 31st March 2020 which includes committed financing from Dstl. Dstl confirms that it has no intention of demanding settlement of the balance due to itself, or any part thereof, prior to this date.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP, rounded to the nearest pound.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Page 2
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PLOUGHSHARE INNOVATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
2.
Accounting policies (continued)
Licence fees (up-front fees charged on the grant of a new licence) are governed by FRS102 and have been taken into turnover in the year the licence is signed.
Where a licence or patent is assigned to a third party, this is treated as a one-off sale and the benefit taken at the date of the transfer, as both the risks and rewards of the patent are passed to the licensee.
Where licence agreements incorporate termination clauses, turnover only recognises those amounts contractually due to the Company. Expenditure will recognise the associated costs up to the date of termination.
When turnover from a licence agreement can be recognised in relation to costs and the costs are measureable, income will be matched against those costs and deferred.
Costs relating to these sales are included in cost of sales.
All other revenue streams, including royalties, are recognised when the amounts are due to the company.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.
The Company is currently in the research phase of an internal project and it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense as it is incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Page 3
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PLOUGHSHARE INNOVATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
2.
Accounting policies (continued)
Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
The capitalisation threshold is £1,000.
Page 4
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PLOUGHSHARE INNOVATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
2.
Accounting policies (continued)
The Company's investments are initially held at cost and subsequently held at what the directors consider their fair value. Fair value is derived by comparing valuations from using valuation techniques such as the price of recent investment rounds, discounted cashflows of each
business and discounted cash flows from the underlying investments.
Fixed asset investments are not held for immediate resale and any gains on realisations are not available for distribution as a dividend. The difference between the fair value of fixed asset investments over the cost to the Company is shown as an unrealised gain or loss.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Short term debtors and creditors are measured at the transaction price. Other financial instruments, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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The average monthly number of employees, including directors, during the year was
13
(2018 -
14
)
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Page 5
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PLOUGHSHARE INNOVATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
Page 6
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PLOUGHSHARE INNOVATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
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Without changes in fair values, the historical cost of investments would be £221,724 at 31 March 2019 (2018: £221,724).
Account has been taken of market intelligence available to the Company to inform the valuations. These market-based adjustments, which have been subject to audit, have a significant effect on the change in investment valuations recognised in the profit and loss account. In 2018-19 these adjustments range from a discount of 0% (2018: 0%) to a discount of 100% (2018: 100%) for companies where the degree of risk attached to future financing and operations is too great for a prudent valuation to be reliably determined.
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Prepayments and accrued income
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Page 7
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PLOUGHSHARE INNOVATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Amounts owed to group undertakings is the balance outstanding for services provided by Dstl at arm's length rates for which credit terms of more than one year have been agreed.
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Allotted, called up and fully paid
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3,750,000
(2018 -
3,750,000
)
Ordinary shares of £
1.00
each
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The prior year figures have been adjusted following amendment to the Company's revenue recognition policy to ensure it is compliant with FRS 102.
Page 8
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PLOUGHSHARE INNOVATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £86,737 (2018: £86,091. Contributions totalling £11,283 (2018: £22,405) were payable to the fund at the balance sheet date and are included in creditors.
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Commitments under operating leases
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At 31 March 2019 the Company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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Related party transactions
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As a wholly owned subsidiary of Dstl, the Company is exempt from disclosing transactions with other members of the group headed by Dstl in accordance with FRS 102 paragraph 33.1A.
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The Company's ultimate controlling party and 100% shareholder is the Secretary of State for Defence represented by Dstl, an Executive Agency for the UK MoD.
The consolidated financial statements for Dstl are available to the public and may be obtained from Porton Down, Salisbury, Wiltshire, SP4 0JQ.
The auditors' report on the financial statements for the year ended 31 March 2019 was unqualified.
The audit report was signed on
6 June 2019
by
Louise Hallsworth FCA
(Senior statutory auditor) on behalf of
James Cowper Kreston
.
Page 9
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