Registered number |
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For the year ended |
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SURREY AQUATECHNOLOGY LTD | |
Annual report and financial statements | |
Contents | |
Page | |
Company information | 1 |
Directors' report | 2 |
Statement of Comprehensive Income | 4 |
Statement of Financial Position | 5 |
Statement of Changes in Equity | 6 |
Notes to the Financial Statements | 7 |
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Company Information |
Directors |
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Secretary |
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Bankers |
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1 Churchill Place |
Canary Wharf |
London |
E14 5HP |
Registered office |
York Biotech Campus |
Sand Hutton |
York |
England |
YO41 1LZ |
Registered number |
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1 |
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Directors' Report | |||||||
For the year ended 31 December 2021 | |||||||
The directors present their report and the unaudited financial statements for the year ended |
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Principal activities | |||||||
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Review of the business, research and development and future developments | |||||||
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Directors' responsibilities | |||||||
The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations. | |||||||
Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 101 Reduced Disclosure Framework and applicable law). Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the directors are required to: | |||||||
● | select suitable accounting policies and then apply them consistently; | ||||||
● | make judgements and estimates that are reasonable and prudent; | ||||||
● | prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. | ||||||
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. | |||||||
Going concern | |||||||
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Directors | |||||||
The following persons served as directors during the year: | |||||||
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Directors' liability insurance | |||||||
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2 | |||||||
Small company provisions | |||||||
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This report was approved by the board on |
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….................................................... | |||||||
Camillus Glover | |||||||
Director | |||||||
3 | |||||||
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Statement of Comprehensive Income | ||||||||
For the year ended |
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Notes | 2021 | 2020 | ||||||
£ | £ | |||||||
Revenue | 4 | - | - | |||||
Cost of sales | - | - | ||||||
Gross profit | - | - | ||||||
Administrative expenses | 6 | ( |
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Operating loss | ( |
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Loss before taxation | ( |
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Tax on loss | 7 | - | - | |||||
Loss for the financial year | ( |
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Other comprehensive income | ||||||||
Gain on revaluation of land and buildings | - | - | ||||||
Total comprehensive income for the year | (22,379) | (122,903) | ||||||
The notes on pages 7 to 13 form part of these financial statements. | ||||||||
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Statement of Financial Position | |||||||
As at |
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Notes | 2021 | 2020 | |||||
£ | £ | £ | £ | ||||
Fixed assets | |||||||
Intangible assets | 8 | 336,095 | 331,052 | ||||
Tangible assets | 9 | - | - | ||||
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Current assets | |||||||
Trade and other receivables | 10 |
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Creditors: amounts falling due within one year | 11 | ( |
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Net current liabilities | ( |
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Net assets |
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Capital and reserves | |||||||
Called up share capital | 12 |
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Share premium | 13 |
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Profit and loss account | 14 | ( |
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Shareholder's funds |
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (FRS 101). | |||||||
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The financial statements were approved by the Board of Directors and authorised for issue on |
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…............................................................... | |||||||
Camillus Glover | |||||||
Director | |||||||
Company registration number: | 05698169 | ||||||
The notes on pages 7 to 13 form part of these financial statements. | |||||||
5 | |||||||
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Statement of Changes in Equity | ||||||||
For the year ended |
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Share | Share | Profit | Total | |||||
capital | premium | and loss | ||||||
account | ||||||||
£ | £ | £ | £ | |||||
At 1 January 2020 |
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( |
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Loss for the financial year | (122,903) | (122,903) | ||||||
At 31 December 2020 | 100 | 1,011,612 | (867,688) | 144,024 | ||||
At 1 January 2021 |
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Loss for the financial year | ( |
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At 31 December 2021 |
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The notes on pages 7 to 13 form part of these financial statements. | ||||||||
6 | ||||||||
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Notes to the Financial Statements | ||||||||
For the year ended |
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1 | General information | |||||||
Surrey Aquatechnology Limited is a private limited company incorporated and domiciled in England and Wales. The registered office address is York Biotech Campus, Sand Hutton, York, England, YO41 1LZ. The principal activity of the Company is described on page 2. | ||||||||
2 | Accounting policies | |||||||
The principal accounting policies, which have been applied consistently throughout the year, are set out below: | ||||||||
Basis of preparation | ||||||||
In preparing these financial statements the company has taken advantage of certain disclosure exemptions conferred by FRS 101 and has not provided: • Additional comparative information as per IAS 1 Presentation of Financial Statements paragraph 38 in respect of: o a reconciliation of the number of shares outstanding at the start and end of the prior period; and o reconciliations of the carrying amounts of property, plant and equipment, intangibles assets and investment property at the start and the end of the prior period. • A Statement of Cash Flows and related disclosures for cash flows from discontinued activities • A statement of compliance with IFRS (a statement of compliance with FRS 101 is provided instead) • Additional comparative information for narrative disclosures and information, beyond IFRS requirements • Disclosures in relation to the objectives, policies and process for managing capital • Disclosure of the effect of future accounting standards not yet adopted • The remuneration of key management personnel • Related party transactions with two or more wholly owned members of the group • Certain disclosures required under IFRS 15 Revenue from Contracts with Customers, including disaggregation of revenue, details of changes in contract assets and liabilities, and details of incomplete performance obligations • The amount of lease income recognised on operating leases as lessor • The maturity analysis of lease liabilities, as required by paragraph 58 of IFRS 16 Leases, has not been disclosed separately as details of indebtedness required by Companies Act has been presented separately for lease liabilities in note 21. |
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In addition, and in accordance with FRS 101, further disclosure exemptions have been applied because equivalent disclosures are included in the consolidated financial statements of Deepverge Plc. These financial statements do not include certain disclosures in respect of: • Share based payments - details of the number and weighted average exercise prices of share options, and how the fair value of goods or services received was determined as per paragraphs 45(b) and 46 to 52 of IFRS 2 Share-Based Payment. • Financial Instrument disclosures as required by IFRS 7 Financial Instruments: Disclosures • Fair value measurements - details of the valuation techniques and inputs used for fair value measurement of assets and liabilities as per paragraphs 91 to 99 of IFRS 13 Fair Value Measurement. |
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7 | ||||||||
The company meets the definition of a qualifying entity under FRS 101 Reduced Disclosure Framework. Going concern The directors have received confirmation that the parent company, DeepVerge plc, will continue to support the company for at least a year following the date of approving these financial statements and hence believe that the going concern assumption of the basis of preparation of the financial statements remains appropriate, notwithstanding the net current liabilities position of the company. |
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Turnover | ||||||||
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. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. | ||||||||
Intangible fixed assets | ||||||||
Know-how: The ordinary share capital subscribed for by the technology inventors (A Sharif and University of Surrey) has been fair valued based on the subscription price paid by third parties to acquire shares in the company at the same time. The difference between the fair value and the price paid has been recognised as know-how, an intangible fixed asset to be amortised on a straight-line basis over five years. |
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Tangible fixed assets | ||||||||
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Plant and machinery | 3 - 4 years | |||||||
Tax on profit on ordinary activities | ||||||||
The tax currently payable is based on taxable profits for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it excludes items that are never taxable or deductible. The company’s liability for the current tax is calculated using tax rates that have been enacted, or substantively enacted, by the reporting end date. Deferred Tax Deferred tax asset has not been included in the financial statements due to the uncertainty surrounding the availability of sufficient profits to surrender the losses. |
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8 | ||||||||
Research and development | ||||||||
Any internally generated development intangible fixed asset is recognised only if all of the following are met: - the related expenditure is clearly identifiable and is part of a defined project - future economic benefits are reasonably certain to be generated by the project and - adequate resources exist, or are reasonably expected to exist, to enable the completion of the project. Where no internally generated intangible fixed asset can be recognised, development expenditure is recognised as an expense in the year in which it is incurred. Internally generated intangible fixed assets are amortised on a straight-line basis over three years. |
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Financial assets | ||||||||
The company classifies its financial assets into one of the categories discussed below, depending on the purpose for which the asset was acquired. The company’s accounting policy for each category is as follows: Fair value through profit or loss The company does not have any assets held for trading nor does it voluntarily classify any financial assets as being at fair value through profit or loss. Amortised Cost These assets arise principally from the provision of goods and services to customers (eg trade debtors), but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. Impairment provisions for current and non-current trade debtors are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade debtors is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade debtors. For trade debtors, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised within cost of sales in the statement of comprehensive income. On confirmation that the trade debtor will not be collectable, the gross carrying value of the asset is written off against the associated provision. |
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Impairment provisions for receivables from related parties and loans to related parties are recognised based on a forward looking expected credit loss model. The methodology used to determine the amount of the provision is based on whether there has been a significant increase in credit risk since initial recognition of the financial asset. For those where the credit risk has not increased significantly since initial recognition of the financial asset, twelve month expected credit losses along with gross interest income are recognised. For those for which credit risk has increased significantly, lifetime expected credit losses along with the gross interest income are recognised. For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised. | ||||||||
9 | ||||||||
From time to time, the company elects to renegotiate the terms of trade debtors due from customers with which it has previously had a good trading history. Such renegotiations will lead to changes in the timing of payments rather than changes to the amounts owed and, in consequence, the new expected cash flows are discounted at the original effective interest rate and any resulting difference to the carrying value is recognised in the statement of comprehensive income (operating profit). | ||||||||
The company’s financial assets measured at amortised cost comprise trade and other debtors and cash and cash equivalents in the balance sheet. Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and – for the purpose of the statement of cash flows – bank overdrafts. Bank overdrafts are shown within ‘Creditors: amounts falling due within one year’ on the balance sheet. | ||||||||
Financial liabilities | ||||||||
The company classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. The company does not have any liabilities held for trading nor does it voluntarily classify any financial liabilities as being at fair value through profit or loss. The company’s accounting policy for each category is as follows: • Bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the balance sheet. Interest expense in this context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. • Trade creditors and other short-term monetary liabilities, which are initially recognised at fair value and are subsequently carried at amortised cost using the effective interest method. |
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Foreign currency translation | ||||||||
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The financial statements are presented in ‘sterling’, which is also the company’s functional currency. Transactions entered into by the company in a currency other than the functional currency are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in profit or loss within ‘finance income or costs’. All other foreign exchange gains and losses are presented in profit or loss within ‘other operating income or expense’. |
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Share capital | ||||||||
Financial instruments issued by the company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The company’s ordinary shares are classified as equity instruments. | ||||||||
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3 | Critical accounting estiamtes and judgements | |||||||
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. Actual results could differ from those estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. |
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4 | Administrative expenses | 2021 | 2020 | |||||
£ | £ | |||||||
Amortisation of intangible | 79,011 | 64,257 | ||||||
Sundry expenses | 197 | - | ||||||
Legal fees | (56,829) | 58,646 | ||||||
22,379 | 122,903 | |||||||
5 | Turnover | |||||||
The Company does not have any turnover for the period. | ||||||||
6 | Employees | 2021 | 2020 | |||||
Number | Number | |||||||
Average number of persons employed by the company |
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There are no employees in the company and any directors' remuneration during the period has been borne by other companies within the DeepVerge plc group. | ||||||||
7 | Tax on profit on ordinary acitivities | |||||||
The value of the tax credit for the year does not equal the value that would be produced by applying the UK standard rate for corporation tax of 19% (2020: 19%) to the loss before tax for the year). The differences are set out below: | ||||||||
2021 | 2020 | |||||||
£ | £ | |||||||
Tax on loss | - | - | ||||||
Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2021 | 2020 | |||||||
£ | £ | |||||||
Loss on ordinary activities before tax | (22,379) | (122,903) | ||||||
Loss on ordinary activities multiplied by the standard rate of corporation tax of 19% (2019: 19%) | (4,252) | (23,352) | ||||||
Effects of: | ||||||||
Losses carried forward | 4,252 | 23,352 | ||||||
Current tax charge for period | - | - | ||||||
11 | ||||||||
8 | Intangible fixed assets | £ | ||||||
Patents and development costs | ||||||||
Cost | ||||||||
At 1 January 2021 | 1,473,538 | |||||||
Additions | 84,054 | |||||||
At 31 December 2021 | 1,557,592 | |||||||
Amortisation | ||||||||
At 1 January 2021 | 1,142,486 | |||||||
Provided during the year | 79,011 | |||||||
At 31 December 2021 | 1,221,497 | |||||||
Net book value | ||||||||
At 31 December 2021 | 336,095 | |||||||
At 31 December 2020 | 331,052 | |||||||
9 | Tangible fixed assets | |||||||
Plant and machinery | ||||||||
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Cost | ||||||||
At 1 January 2021 |
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At 31 December 2021 |
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Depreciation | ||||||||
At 1 January 2021 |
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At 31 December 2021 |
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Net book value | ||||||||
At 31 December 2021 | - | |||||||
At 31 December 2020 | - | |||||||
10 | Trade and other receivables | 2021 | 2020 | |||||
£ | £ | |||||||
Other debtors |
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Aggregate amount |
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11 | Creditors: amounts falling due within one year | 2021 | 2020 | |||||
£ | £ | |||||||
Trade Payables | - |
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Amounts owed to group undertakings |
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Aggregate amount |
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Amounts owed to group undertakings are non interest bearing, repayable on demand and have no securities attached to them. | ||||||||
12 | ||||||||
12 | Called up share capital | 2021 | 2020 | |||||
Nominal | £ | £ | ||||||
Authorised Allotted and fully paid | value | Number | ||||||
Ordinary shares | £0.001 each | 100,000 | 100 | 100 | ||||
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13 | Share premium | 2021 | 2020 | |||||
£ | £ | |||||||
Authorised Allotted and fully paid | Number | |||||||
Ordinary shares | 100,000 | 1,011,612 | 1,011,612 | |||||
1,011,612 | 1,011,612 | |||||||
14 | Retained earnings | 2021 | 2020 | |||||
£ | £ | |||||||
At 1 January 2021 | (867,688) | (744,785) | ||||||
Loss for the financial year | (22,379) | (122,903) | ||||||
At 31 December 2021 | (890,067) | (867,688) | ||||||
15 | Related party transactions | |||||||
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16 | Ultimate controlling party | |||||||
The results of the company are included in the consolidated financial statements of DeepVerge plc, copies of which are available on the Company’s website at www.deepverge.com. |
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13 |