Company registration number 04497290 (England and Wales)
IOSBIO LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
IOSBIO LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
IOSBIO LTD
BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
5,000,890
4,477,310
Tangible assets
4
493,890
502,865
Investments
5
2
5,494,780
4,980,177
Current assets
Debtors
6
491,139
916,203
Cash at bank and in hand
908,700
3,453,533
1,399,839
4,369,736
Creditors: amounts falling due within one year
7
(225,861)
(753,050)
Net current assets
1,173,978
3,616,686
Total assets less current liabilities
6,668,758
8,596,863
Provisions for liabilities
(97,361)
(97,361)
Net assets
6,571,397
8,499,502
Capital and reserves
Called up share capital
9
3,765
3,742
Share premium account
16,341,215
15,969,514
Capital redemption reserve
9
9
Profit and loss reserves
(9,773,592)
(7,473,763)
Total equity
6,571,397
8,499,502
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
IOSBIO LTD
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023
31 July 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 21 December 2023 and are signed on its behalf by:
Mr W M Channon
Director
Company registration number 04497290 (England and Wales)
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
1
Accounting policies
Company information
IOSBIO Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Hayworthe House, Market Place, Haywards Heath, West Sussex, RH16 1DB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have reviewed up to date management information and ability to access additional funding and on this basis the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Turnover for services are recognised by reference to the stage of completion of the contract determined by the value of services provided at the balance sheet date.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
5% straight line per annum
Development costs
10% straight line per annum
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line per annum
Plant and equipment
20% straight line per annum
Fixtures and fittings
20% straight line per annum
Computers
33% straight line per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year.
Research and development repayable tax credits arise from surrendering losses in the year and are recognised in the year in which they relate.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average number of employees during the year was 14 (2022 - 15).
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 6 -
3
Intangible fixed assets
Patents & licences
Development costs
Total
£
£
£
Cost
At 1 August 2022
1,506,906
6,076,267
7,583,173
Additions
64,211
1,178,500
1,242,711
At 31 July 2023
1,571,117
7,254,767
8,825,884
Amortisation and impairment
At 1 August 2022
799,484
2,306,379
3,105,863
Amortisation charged for the year
52,579
666,552
719,131
At 31 July 2023
852,063
2,972,931
3,824,994
Carrying amount
At 31 July 2023
719,054
4,281,836
5,000,890
At 31 July 2022
707,422
3,769,888
4,477,310
4
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 August 2022
117,214
886,921
25,173
63,815
1,093,123
Additions
36,086
60,524
40,221
4,285
141,116
Disposals
(1,000)
(417)
(1,417)
At 31 July 2023
153,300
946,445
65,394
67,683
1,232,822
Depreciation and impairment
At 1 August 2022
66,213
477,525
5,945
40,575
590,258
Depreciation charged in the year
16,574
106,962
11,983
13,168
148,687
Eliminated in respect of disposals
(13)
(13)
At 31 July 2023
82,787
584,487
17,928
53,730
738,932
Carrying amount
At 31 July 2023
70,513
361,958
47,466
13,953
493,890
At 31 July 2022
51,001
409,396
19,228
23,240
502,865
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
2
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
5
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022 & 31 July 2023
2
Impairment
At 1 August 2022
-
Impairment losses
2
At 31 July 2023
2
Carrying amount
At 31 July 2023
-
At 31 July 2022
2
Fixed asset investments comprise equity shares in Stabilitech Alpha Limited and Stabilitech Beta Limited, neither of which are publicly traded. The investments were fully impaired in the year.
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
309,424
610,808
Amounts owed by group undertakings
48,240
Other debtors
181,715
257,155
491,139
916,203
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
75,883
284,841
Taxation and social security
55,813
54,163
Other creditors
94,165
414,046
225,861
753,050
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
8
Share-based payment transactions
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at start of period
346,852
327,352
1.16
8.77
Granted
79,316
19,500
1.16
1.16
Forfeited
(23,000)
1.16
Outstanding at end of period
403,168
346,852
1.16
1.16
Exercisable at end of period
327,352
327,352
1.16
1.16
Under the company's share option plan, share options were granted to key employees.
The employee is entitled to exercise 1/3 of the issued share options 1 year from the grant date, 1/3 of the issued share options 2 years from the grant date and 1/3 of the issued share options 3 years from the grant date.
The share options expire ten years after grant.
Options are forfeited if the employee leaves the company before they become entitled to exercise the share options.
For equity instruments granted before the date of transition to FRS 102, the company does not have to apply Section 26 of FRS 102 Share-based Payment, and on this basis no share-based payment charge has been recognised in these or any preceding financial statements of the company.
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
3,764,870
3,741,588
3,765
3,742
During the year, 23,282 shares with a nominal value of £0.001 were issued for consideration of £14.43 per share.
IOSBIO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
10
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Payments totalling £nil (2022 - £132,335) were made to Channon Consultants LLP, an entity in which one of the directors has an interest. At the year end £nil (2022 - £nil) was owed from IOSBIO Ltd in respect of these transactions.
Payments totalling £26,945 (2022 - £28,545) were made to ProPharma Partners Limited, an entity inwhich one of the directors has an interest. At the year end £nil (2022 - £6,504) was owed from IOSBIO Ltd in respect of these transactions.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
466,152
595,788