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REGISTERED NUMBER:
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Financial Statements |
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for the Year Ended 31 March 2018 |
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for |
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Isotek Oil And Gas Limited |
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REGISTERED NUMBER:
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Financial Statements |
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for the Year Ended 31 March 2018 |
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for |
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Isotek Oil And Gas Limited |
Isotek Oil And Gas Limited (Registered number: 07176384) |
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Contents of the Financial Statements |
for the Year Ended 31 March 2018 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Isotek Oil And Gas Limited |
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Company Information |
for the Year Ended 31 March 2018 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditor |
28 Prescott Street |
Halifax |
West Yorkshire |
HX1 2LG |
Isotek Oil And Gas Limited (Registered number: 07176384) |
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Balance Sheet |
31 March 2018 |
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31.3.18 | 31.3.17 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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Investments | 6 |
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CURRENT ASSETS |
Stocks |
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Debtors | 7 |
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Investments | 8 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 9 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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PROVISIONS FOR LIABILITIES |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Revaluation reserve | 11 |
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Retained earnings |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
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Isotek Oil And Gas Limited (Registered number: 07176384) |
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Notes to the Financial Statements |
for the Year Ended 31 March 2018 |
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1. | STATUTORY INFORMATION |
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Isotek Oil And Gas Limited is a
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registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of |
Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the |
Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the |
revaluation of certain assets. |
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The financial statements are presented in £ sterling and rounded to the nearest £. |
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The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies |
have been consistently applied to all years presented. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value |
added tax and other sales taxes. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any |
accumulated amortisation and any accumulated impairment losses. |
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Internally generated intangible assets |
Expenditure on research activities is recognised as an expense in the period in which it is incurred. |
Patent costs and the attributable development costs are recognised as intangible assets when feasibility has been |
established. These are measured initially at cost and amortised to the profit and loss account over the estimated useful |
economic life.The company has committed technical, financial and other resources to complete the development and it is |
probable that the asset will generate probable future economic benefits.The development costs capitalised include the cost |
of materials and direct labour costs incurred up to the date the asset is available for use. |
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Tangible fixed assets |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for |
obsolete and slow moving items. |
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Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing |
stocks to their present location and condition. |
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Financial instruments |
Basic financial instruments are recognised at amortised cost, except for investments in non-puttable ordinary shares which |
are measured at fair value, with changes recognised in profit or loss. |
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Isotek Oil And Gas Limited (Registered number: 07176384) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent |
that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively |
enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet |
date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in |
which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been |
enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be |
recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet |
date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. |
Exchange differences are taken into account in arriving at the operating result. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme |
are charged to profit or loss in the period to which they relate. |
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Fixed asset investments |
Investments in joint ventures are measured under the cost model, at cost less impairment. |
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Leasing |
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period |
of the lease. |
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Current asset investments |
Investment in listed shares are measured at fair value, with changes recognised in profit or loss. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Isotek Oil And Gas Limited (Registered number: 07176384) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
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4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
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COST |
At 1 April 2017 |
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Additions |
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At 31 March 2018 |
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AMORTISATION |
At 1 April 2017 |
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Charge for year |
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At 31 March 2018 |
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NET BOOK VALUE |
At 31 March 2018 |
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At 31 March 2017 |
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2017 |
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Additions |
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At 31 March 2018 |
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DEPRECIATION |
At 1 April 2017 |
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Charge for year |
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At 31 March 2018 |
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NET BOOK VALUE |
At 31 March 2018 |
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At 31 March 2017 |
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Isotek Oil And Gas Limited (Registered number: 07176384) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
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6. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
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COST |
At 1 April 2017 |
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Additions |
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At 31 March 2018 |
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NET BOOK VALUE |
At 31 March 2018 |
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At 31 March 2017 |
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7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.18 | 31.3.17 |
£ | £ |
Trade debtors |
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Other debtors |
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Isotek Microwave Ltd |
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Tax recoverable |
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VAT |
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Prepayments |
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8. | CURRENT ASSET INVESTMENTS |
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Listed Investments |
31.03.18 | 31.03.17 |
FAIR VALUE | £ | £ |
At 1 April | 78,889 | 0 |
Reclassification/transfer | 0 | 59,400 |
Gain / (Loss) on financial asset | (8,029 | ) | 19,489 |
At 31 March | 70,860 | 78,889 |
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9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.18 | 31.3.17 |
£ | £ |
Trade creditors |
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Overseas tax due |
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Other creditors |
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Accrued expenses |
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Isotek Oil And Gas Limited (Registered number: 07176384) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
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10. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.3.18 | 31.3.17 |
£ | £ |
Within one year |
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Between one and five years |
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11. | RESERVES |
Revaluation |
reserve |
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At 1 April 2017 |
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Gain/(Loss) on financial asset | (8,029 | ) |
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At 31 March 2018 |
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12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was qualified on the following basis: |
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Basis for Qualified opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our |
responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial |
statements section of our report. We are independent of the company in accordance with the ethical requirements that are |
relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our |
other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained |
is sufficient and appropriate to provide a basis for our qualified opinion. With respect to the opening stock, where the audit |
evidence available to us was limited because we did not observe the counting of the physical stock at 31 March 2017 due |
to the nature of the company's records, we were unable to obtain sufficient appropriate audit evidence regarding the |
opening stock quantities by using other audit procedures.The company's investment in 4C Solutions AS, a foreign joint |
venture is shown at a cost of £258,454 on the balance sheet. We were unable to obtain sufficient appropriate audit |
evidence on the impairment of the investment at 31st March 2018 as we did not have access to financial information on 4C |
Solutions AS at this date. Consequently, we were unable to determine whether any impairment adjustment to the amount |
was necessary at that date. Included in Debtors is a £698,860 loan due to the company from Isotek Microwave Limited, a |
company under common control. There is no provision against the loan in these accounts. In our opinion, recoverability of |
this loan is doubtful and a provision is needed against all of the loan value. |
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Matters required to report by exception |
In respect solely of the limitation on our work relating to the impairment of the fixed asset investment, described above: |
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- we have not obtained all the information and explanations that we considered necessary for the |
purpose of our audit; and |
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- we were unable to determine whether adequate accounting records had been kept. |
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for and on behalf of
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13. | PENSION COMMITMENTS |
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The company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme |
are held separately from those of the company in an independently administered fund. At the balance sheet date there |
were unpaid contributions of £25,025 (2017: £19,762) due to the fund, these are included in other creditors. |
Isotek Oil And Gas Limited (Registered number: 07176384) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
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14. | GUARANTEES AND OTHER FINANCIAL COMMITMENTS |
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Total financial commitments, guarantees and contingencies which are not included in the balance sheet amount to |
£586,848 (2017 - £671,268). |
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At 31 March 2018 the company had future minimum lease payments under non-cancellable operating leases of £268,973. |
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GUARANTEES |
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The company has entered into a back to back guarantee in respect of its joint venture, 4C Solutions AS. |
Under the terms of a customer contract, 4C Solutions AS has been required to provide an advance payment bond. |
SR-Bank ASA has provided the advance payment guarantee and overdraft facilities to 4C Solutions AS. The bank has |
conditioned the provision of the payment guarantee and overdraft facilities on a surety of NOK 14 000 000 (£1,271,500), |
the surety has been provided by Randaberg Industries AS, one of the four shareholders in 4C Solutions AS. |
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The guarantee by Isotek Oil and Gas Limited provides Randaberg Industries AS security for any payment obligations under |
the surety to the bank. At the balance sheet date Isotek Oil and Gas Limited had a liability of 25% (£317,875). In December |
2018 the company sold all of it shares in 4C Solutions AS and no longer has any liabilities under the back to back |
guarantee agreement. |
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15. | RELATED PARTY DISCLOSURES |
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Professor J D Rhodes and his immediate family hold 66% of the issued ordinary shares in Isotek Microwave Limited and |
55% of the issued ordinary shares in this company. |
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Included in debtors is a loan to Isotek Microwave Limited amounting to £698,860 with an interest rate of 3.5%. In addition to |
this, during the year the company recharged £28,860 in respect of management charges to Isotek Microwave Limited. Also, |
£15,000 was recharged for the costs of a building sub-let to Isotek Microwave Limited by the company. |
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16. | POST BALANCE SHEET EVENTS |
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Fixed Asset Investment |
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At September 2018 the joint venture requested further investments from each of its shareholders to bolster its financial |
position. As a result of this, the joint venture increased its share capital and raised 15,000,000NOK (£1,391,476), new |
shares were subscribed by the company through a debt to equity conversion . The cost to the company of the debt to |
equity conversion was £157,000. The result of this was the company reduced its shareholding in the joint venture from 25% |
to 15% and increased the cost of its investment to £415,454. By December 2018 the financial position of the joint venture |
deteriorated and the company's investment in the joint venture became impaired. In December 2018, the company sold all |
of its shares in the joint venture to Randaberg Havnelager AS for £36,000 resulting in a loss to the company of £379,454. |
From December 2018 the back to back guarantee agreement (disclosed under the Guarantees and Other Financial |
Commitments note to the accounts) was terminated. |
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Current Asset Investment |
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In October 2018 the company sold all of its listed investments for a consideration of £160,896. |