Company registration number 08536866 (England and Wales)
SUPERDIELECTRICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
SUPERDIELECTRICS LIMITED
COMPANY INFORMATION
Directors
Mr F J Heathcote
Dr D J Highgate
Mr N A Spence
Mr I Wright
Mr W P S Richards
Mr Marcus Scott
(Appointed 1 July 2021)
M A Spencer
Secretary
Mr Marcus Scott
Company number
08536866
Registered office
The Mansion
Chesterford Research Park
Little Chesterford
Saffron Walden
CB10 1XL
Auditor
Ensors Accountants LLP
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
Business address
The Mansion
Chesterford Research Park
Little Chesterford
Saffron Walden
CB10 1XL
Bankers
Lloyds Bank Plc
49 Howardgate
Welwyn Garden City
AL8 6BA
SUPERDIELECTRICS LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8 - 9
Statement of cash flows
10
Notes to the financial statements
11 - 31
SUPERDIELECTRICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The principal activity of the company continued to be that of research and experimental development of natural sciences and engineering.
Results and dividends
The results for the year are set out on page 6.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr F J Heathcote
Dr D J Highgate
Mr N A Spence
Mr I Wright
Mr W P S Richards
Mr Marcus Scott
(Appointed 1 July 2021)
M A Spencer
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
-
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
-
the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
On behalf of the board
Mr Marcus Scott
Director
31 August 2022
SUPERDIELECTRICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the directors must not approve the financial statements 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 financial statements, International Accounting Standard 1 requires that directors:
-
properly select and apply accounting policies;
-
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
-
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
-
make an assessment of the company's ability to continue as a going concern.
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 financial statements 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.
SUPERDIELECTRICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPERDIELECTRICS LIMITED
- 3 -
Opinion
We have audited the financial statements of Superdielectrics Limited
(the 'company')
for the year ended 31 March 2022 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and
notes to the financial statements, including significant accounting policies
. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2022 and of its loss for the year then ended;
-
have been properly prepared in accordance with UK adopted international accounting standards; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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
Auditor's
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 opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
SUPERDIELECTRICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPERDIELECTRICS LIMITED
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
directors'
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Our audit was designed to include tests of detail together with an assessment of the control environment to
enable us to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud
including revenue recognition
,
management override of systems and
control
, transactions with related parties, commitments and contingencies and accounting estimates.
We also obtained an understanding of the legal and regulatory framework that the company operates in, through discussions with the directors and other management, and from our own knowledge and experience of the sector.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
SUPERDIELECTRICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPERDIELECTRICS LIMITED
- 5 -
-
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework both at the planning stage and reminded to remain alert throughout the audit;
-
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
-
audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
-
reviewing minutes of those charged with governance;
-
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud;
-
robustly challenged accounting estimates to ensure no indication of management bias.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Malcolm McGready (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
31 August 2022
Chartered Accountants
Statutory Auditor
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
SUPERDIELECTRICS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
2022
2021
as restated
Notes
£
£
Administrative expenses
(3,819,296)
(859,150)
Operating loss
5
(3,819,296)
(859,150)
Investment revenues
8
5,236
Finance costs
9
(26,309)
Loss before taxation
(3,840,369)
(859,150)
Income tax income
10
117,547
20,859
Loss and total comprehensive income for the year
(3,722,822)
(838,291)
The income statement has been prepared on the basis that all operations are continuing operations.
SUPERDIELECTRICS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2022
31 March 2022
- 7 -
31 March
31 March
1 April
2022
2021
2020
as restated
Notes
£
£
£
Non-current assets
Property, plant and equipment
11
2,531,316
546,663
10,230
Investments
12
16
15
15
2,531,332
546,678
10,245
Current assets
Trade and other receivables
14
809,995
234,867
9,324
Current tax recoverable
138,406
111,058
90,199
Cash and cash equivalents
9,587,313
12,402,047
182,294
10,535,714
12,747,972
281,817
Current liabilities
Trade and other payables
18
1,011,350
255,840
28,348
Lease liabilities
19
96,067
110,389
-
1,107,417
366,229
28,348
Net current assets
9,428,297
12,381,743
253,469
Non-current liabilities
Lease liabilities
19
353,799
299,713
-
Net assets
11,605,830
12,628,708
263,714
Equity
Called up share capital
22
603
524
492
Share premium account
23
17,085,073
14,385,208
1,399,490
Accumulated deficit
(5,479,846)
(1,757,024)
(1,136,268)
Total equity
11,605,830
12,628,708
263,714
The notes on pages 11 to 31 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 31 August 2022 and are signed on its behalf by:
Mr Marcus Scott
Director
Company registration number 08536866
SUPERDIELECTRICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
Share capital
Share premium account
Equity reserve
Profit/(loss)
Total Accumulated Deficit
Total
Notes
£
£
£
£
£
£
As restated for the period ended 31 March 2021:
Balance at 1 April 2020
492
1,399,490
342,187
(1,478,455)
(1,136,268)
263,714
As restated
492
1,399,490
342,187
(1,478,455)
(1,136,268)
263,714
Year ended 31 March 2021:
Loss and total comprehensive income for the year
-
-
-
(838,291)
(838,291)
(838,291)
Total comprehensive income for the year
-
-
-
(838,291)
(838,291)
(838,291)
Contributions by and distributions to owners:
Issue of fully paid shares net of share issue costs
22
32
12,985,718
-
-
12,985,750
Credit to equity for equity settled share-based payments
21
-
-
-
217,535
217,535
217,535
Other movements
-
-
217,535
(217,535)
-
-
Balance at 1 April 2021
524
14,385,208
559,722
(2,316,746)
(1,757,024)
12,628,708
Adjusted balance at 1 April 2021
524
14,385,208
559,722
(2,316,746)
(1,757,024)
12,628,708
SUPERDIELECTRICS LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Share capital
Share premium account
Equity reserve
Profit/(loss)
Total Accumulated Deficit
Total
Notes
£
£
£
£
£
£
- 9 -
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
-
(3,722,822)
(3,722,822)
(3,722,822)
Total comprehensive income for the year
-
-
-
(3,722,822)
(3,722,822)
(3,722,822)
Contributions by and distributions to owners:
Issue of fully paid shares net of share issue costs
22
79
2,699,865
-
-
2,699,944
Other movements
-
-
(374,120)
374,120
-
-
Balance at 31 March 2022
603
17,085,073
185,602
(5,665,448)
(5,479,846)
11,605,830
SUPERDIELECTRICS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
2022
2021
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(3,313,245)
(616,942)
Income taxes refunded
90,199
-
Net cash outflow from operating activities
(3,223,046)
(616,942)
Investing activities
Purchase of property, plant and equipment
(2,164,944)
(149,055)
Purchase of subsidiaries
(1)
Interest received
5,236
Net cash used in investing activities
(2,159,709)
(149,055)
Financing activities
Proceeds from issue of shares
2,804,693
13,790,548
Share issue costs
(104,749)
(804,798)
Payment of lease liabilities
(131,923)
-
Net cash generated from financing activities
2,568,021
12,985,750
Net (decrease)/increase in cash and cash equivalents
(2,814,734)
12,219,753
Cash and cash equivalents at beginning of year
12,402,047
182,294
Cash and cash equivalents at end of year
9,587,313
12,402,047
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
1
Accounting policies
Company information
Superdielectrics Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Mansion, Chesterford Research Park, Little Chesterford, Saffron Walden, CB10 1XL.
The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
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 principle 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. The
financial statements
present information about the company as an individual entity and not about its group
.
1.2
Going concern
The going concern assumption of the company is based upon the success of the research programme currently being undertaken.
true
The Directors believe the company is a going concern as funding is continually being sought.
There is no reason to suggest that the company is not a going concern on this basis as it will remain solvent for the foreseeable future.
1.3
Property, plant and equipment
Property, plant and equipment 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 property
straight line over the term of the lease
Fixtures and fittings
25% reducing balance
Plant and machinery
10 year straight line
Computer equipment
3 year straight line
Motor vehicles
25% reducing balance
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 recognised in the
income statement
.
1.4
Impairment of tangible and intangible assets
At each reporting end date, the
company
reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 12 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
1.5
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.6
Financial assets
IFRS 9 requires an entity to address the classification, measurement and recognition of financial assets.
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost 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 arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
1.7
Financial liabilities
IFRS 9 requires an entity to address the classification, measurement and recognition of financial assets and liabilities.
The company recogni
s
es financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either
'
financial liabilities at fair value through profit or loss
'
or
'
other financial liabilities
'
.
Other financial liabilities
Other financial liabilities, including borrowings
, t
rade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs
directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method
.
For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expire. The Company also derecognise a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred, or liabilities assumed) is recognised in profit or loss.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 13 -
1.8
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax
income represents the sum of the tax currently receivable.
Current tax
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 further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
income statement
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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
inventories
or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 14 -
1.12
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the
Black scholes
model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.13
Leases
All leases are accounted for by recognising a right-of-asset and a lease liability except for:
At inception, the company assesses whether a contract is
,
or contains
,
a lease
within the scope of IFRS 16. A contract is
,
or contains
,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within
property, plant and equipment.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in
:
future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 15 -
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.14
Operating segments are defined as components of an entity where discrete financial information is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. The CODM has been identified as the Chief Executive Officer ("CEO"). The Company operates as one operating segment because it's CEO, reviews its financial information on a Company level for purposes of making decisions regarding allocating resources and assessing performance. The Company has no segment managers who are held accountable by the CEO for operations, operating results, and planning for levels of components below the unit level.
1.15
Research and development expenditure
Research and development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised within administrative expenses in the statement of comprehensive income as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.
2
Adoption of new and revised standards and changes in accounting policies
Standards which are in issue but not yet effective
At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
IFRS 17
Insurance Contracts (effective on or after 1 January 2023)
IAS 1 (amendments)
Presentation of Financial Statements - Classification of Liabilities as Current or Non-Current (effective on or after 1 January 2023)
IAS 1 (amendments)
Presentation of Financial Statements - Disclosure of Accounting Policies (effective on or after 1 January 2023)
IAS 8 (amendments)
Accounting Policies, Changes in Accounting Estimates and Errors (effective on or after 1 January 2023)
IAS 12 (amendments)
Deferred Tax related to Assets and Liabilities arising from Single Transaction (effective on or after 1 January 2023)
The company is currently assessing the impact of these new accounting amendments but does not expect that their adoption will have a material impact on the financial statements in future periods.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 16 -
3
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. 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 the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Critical judgements
Classification of costs between development costs to capitalise and research costs to expense
The Company reviews expenditures, including wages and benefits for employees, incurred on development activities and based on their judgement of the costs incurred assesses whether the expenditure meets the capitilisation criteria set out in IAS 38. The Company specifically considers if additional expenditure on projects relates to maintenance or new development projects. No development costs have been capitalised to date due to the Company determining they are in the research phase and have not met the capitalisation criteria as set out in IAS 38.
Key sources of estimation uncertainty
Share payment obligation
In November 2020, the Company granted 66,666 Unapproved share options to Directors, which vested immediately. The options have an exercise price of £4.50. In addition to the issue of the Unapproved share options the Company issued 151,791 share warrants in December 2020 to various parties as consideration for the exchange of services. The Company have determined the issue of the warrants as share-based payments and have accordingly been treated under IFRS 2 using a fair value at inception derived from the Black-Scholes model using the same assumptions as the share options.
As vested immediately, the initial fair value of the options and warrants of £217,535 were recorded as a
deduction against the share premium account.
The fair value of the warrants and options was determined based on the Black-Scholes option pricing model taking into account the following assumptions:
Further explanations of the key assumptions above are as follows:
Share price: As the Company’s shares are not publicly traded as of 31 March 2021, the Company must estimate the fair value of the shares. The fair value of the shares has been determined by using the value of the most recent round of Ordinary shares issued.
Volatility: Since there is no trading history for the company’s shares as of 31 March 2021, the expected price volatility for the shares was estimated using a standard deviation technique based on movements in shareholders’ funds. The volatility was compared to the average volatility of Companies within the AIM listing with no material difference identified.
There have been no share options or warrants which have been recognised during the year to 31 March 2022.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 17 -
4
Exceptional items
Within the year ended 31st March 2022, a significant amount of costs have been incurred in respect of the re-structuring of the group as well as fees to do with the potential initial public offering of it's parent company, Superdielectrics Group Plc. Total costs expensed during the year are approximately £700k, these are not annual recurring costs.
5
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Research and development costs
618,679
126,908
Fees payable to the company's auditor for the audit of the company's financial statements
13,000
8,465
Depreciation of property, plant and equipment
360,353
22,724
Profit on disposal of property, plant and equipment
(34,684)
-
Share-based payments
217,535
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
21
6
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,086,552
371,518
Social security costs
118,068
26,240
Pension costs
9,647
1,214,267
397,758
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
568,327
266,583
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
200,000
-
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 18 -
8
Investment income
2022
2021
£
£
Interest income
Financial instruments measured at amortised cost:
Bank interest received
5,236
Income above relates to assets held at amortised cost, unless stated otherwise.
9
Finance costs
2022
2021
£
£
Interest on lease liabilities
26,309
10
Income tax expense
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(117,547)
(20,859)
The charge for the year can be reconciled to the loss per the income statement as follows:
2022
2021
£
£
Loss before taxation
(3,840,369)
(859,150)
Expected tax credit based on a corporation tax rate of 19.00% (2021: 19.00%)
(729,670)
(163,239)
Effect of expenses not deductible in determining taxable profit
29
41,332
Change in unrecognised deferred tax assets
681,418
128,713
Permanent capital allowances in excess of depreciation
(18,746)
823
Research and development tax credit
(117,549)
(20,859)
Under/(over) provided in prior years
1,347
Additional deduction for R&D expenditure
(87,059)
(15,449)
Remeasurement of deferred tax for changes in tax rates
6,473
Surrender of tax losses for R&D tax credit refund
154,030
Taxation credit for the year
(117,547)
(20,859)
Corporation tax rates in the UK are changing from 01 April 2023, the main rate of corporation tax will increase to 25% (from 19%). The main rate will apply to companies with taxable profits in excess of £250,000. For companies with taxable profits below £50,000 the corporation tax rate will continue to be 19%, with marginal rate relief applying for companies with profits between £50,000 and £250,000.
Estimates tax losses of £5,108,083 (2021: £1,520,073) are available for relief against future profits. No deferred tax asset has been provided for in the accounts based on the estimated tax losses.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 19 -
11
Property, plant and equipment
Leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2020
11,160
11,160
Additions
410,103
94,891
1,783
52,380
559,157
At 31 March 2021
410,103
106,051
1,783
52,380
570,317
Additions
2,359,559
194,554
27,014
1,695
43,354
2,626,176
Disposals
(281,170)
(281,170)
At 31 March 2022
2,488,492
300,605
27,014
3,478
95,734
2,915,323
Accumulated depreciation and impairment
At 1 April 2020
930
930
Charge for the year
19,038
2,495
99
1,092
22,724
At 31 March 2021
19,038
3,425
99
1,092
23,654
Charge for the year
314,370
20,273
5,406
1,159
19,145
360,353
At 31 March 2022
333,408
23,698
5,406
1,258
20,237
384,007
Carrying amount
At 31 March 2022
2,155,084
276,907
21,608
2,220
75,497
2,531,316
At 31 March 2021
391,065
102,626
-
1,684
51,288
546,663
Leasehold properties comprise solely of Right of Use Assets.
12
Investments
Current
Non-current
2022
2021
2022
2021
£
£
£
£
Investments in subsidiaries
16
15
Fair value of financial assets carried at amortised cost
Except as detailed below the directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 20 -
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2022 are as follows:
Name of undertaking
Class of
% Held
shares held
Direct
Supercapacitor Materials Ltd
Ordinary
100.00
Superdielectrics Electric Industrial Products Ltd
Ordinary
100.00
Superdielectrics Vertical Farming Ltd
Ordinary
100.00
Superdielectrics Electric Ships Ltd
Ordinary
100.00
Superdielectrics Mobile Electronics Ltd
Ordinary
100.00
Superdielectrics Motorsport Ltd
Ordinary
100.00
Superdielectrics Electric Trains Ltd
Ordinary
100.00
Superdielectrics Grid Power Management Ltd
Ordinary
100.00
Superdielectrics Autonomous Flying Vehicles Ltd
Ordinary
100.00
Superdielectrics Automotive Ltd
Ordinary
100.00
Superdielectrics Electric Household Products Ltd
Ordinary
100.00
Superdielectrics Electric Aircraft Ltd
Ordinary
100.00
Superdielectrics Rapid Refuelling Ltd
Ordinary
100.00
Superdielectrics Renewable Energy Storage Ltd
Ordinary
100.00
Superdielectrics Research Ltd
Ordinary
100.00
Superdielectrics Electric Bicycles Ltd
Ordinary
100.00
All of the above subsidiaries have the following registered office, The Mansion Chesterford Park, Little Chesterford, Saffron Walden, England CB10 1XL.
14
Trade and other receivables
As at
31 March
31 March
1 April
2022
2021
2020
£
£
£
VAT recoverable
76,736
134,795
9,124
Amounts owed by subsidiary undertakings
1,400
200
200
Other receivables
100,249
66,337
-
Prepayments
631,610
33,535
-
809,995
234,867
9,324
809,995
234,867
9,324
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 21 -
15
Trade receivables - credit risk
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
The Company's operations expose it to degrees of financial risk, including credit risk. Credit risk is primarily attributable to the Company's cash and cash equivalents and other receivable balances.
The Company's cash and cash equivalents are held with banks with credit ratings of the following:-
Rating agency
Fitch
Moody's
Standard & Poor's
Rating
A+
A1
A+
Due to the Company being in it's research and development phase there are no associated trade receivables, as a result there are no expected credit losses. Other receivables mainly comprise of rental deposits, these are considered fully recoverable and are not significant in assessing expected credit losses.
Responsibility for credit risk management rests with the board of directors. The Company manage credit risk by maintaining adequate reserves and by continuously monitoring forecasts and actual actual cash flows.
16
Financial Instruments
Financial Assets
The Company holds financial assets measured at amortised cost. At the year-end these financial assets totalled £9,671,850 (31 March 2021: £12,468,584)(1 April 2020: £182,494)
Financial Liabilities
The Company hold financial liabilities measured at amortised cost. At the year-end the carrying amount of these financial liabilities totalled £1,419,078 (31 March 2021: £644,577)(1 April 2020: £23,348). The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 22 -
17
Liquidity risk
The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.
Less than 1 month
1 – 3 months
3 months to 1 year
1 – 5 years
Total
£
£
£
£
£
At 1 April 2020
Accruals
28,334
-
-
-
28,334
28,334
-
-
-
28,334
At 31 March 2021
Trade payables
146,383
-
-
-
146,383
Accruals
88,078
-
-
-
88,078
Lease liabilities
19,930
10,294
90,671
313,846
434,741
254,391
10,294
90,671
313,846
669,202
At 31 March 2022
Trade payables
285,342
100
100
100
285,642
Accruals
683,855
-
-
-
683,855
Lease liabilities
-
30,069
90,207
390,897
511,173
969,197
30,169
90,307
390,997
1,480,670
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
17
Liquidity risk
(Continued)
- 23 -
Liquidity risk management
The Company is exposed to liquidity risk across the financial liability balances identified above, which arises during the normal course of trade and can affect the Company's ability to effectively manage its cash flow and ensure it can meet its obligations as and when they fall due.
Responsibility for liquidity risk management rests with the board of directors, which has established an appropriate risk management framework for the management of the Company's funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Capital risk management
The Company's capital management objectives are:
-
to ensure the Company has the necessary capital available to fund its research activities; and
-
to ensure the Company's ability to continue as a going concern; and
-
to provide long-term returns to shareholders.
The Company defines and monitors capital based on the carrying amount of equity less cash and cash equivalents as presented on the face of financial position. In 2022, this totalled £2,018,517 (31 March 2021: £226,661)(1 April 2020: £81,420).
The Board of Directors monitors the level of capital as compared to the Company's commitments and adjusts the level of capital as is determined to be necessary by issuing new shares. The Company is not subject to any externally imposed capital requirements.
18
Trade and other payables
As at
31 March
31 March
1 April
2022
2021
2020
£
£
£
Trade payables
285,342
146,383
-
Accruals
683,855
88,078
28,334
Social security and other taxation
42,138
23,032
-
Other payables
15
(1,653)
14
1,011,350
255,840
28,348
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 24 -
19
Lease liabilities
2022
2021
Maturity analysis
£
£
Within one year
(120,276)
(120,895)
In two to five years
(390,897)
(313,846)
Total undiscounted liabilities
(511,173)
(434,741)
Future finance charges and other adjustments
61,307
24,638
Lease liabilities in the financial statements
(449,866)
(410,103)
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2022
2021
£
£
Current liabilities
96,067
110,389
Non-current liabilities
353,799
299,713
449,866
410,102
2022
2021
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
26,309
Other leasing information is included in note 25.
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
9,647
-
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 25 -
21
Share-based payments
At the year end there are 9,172,760 group equity settled share options in issue at an exercise price of 0.225pence per share. At the year end 3,924,700 of these are able to be exercised. The options are exercisable within the company's parent, Superdielectrics Group Plc.
During the year there was a group reconstruction whereby Superdielectrics Group Plc undertook a share for share exchange acquiring the entire issued share capital of Superdielectrics limited becoming the company's ultimate parent. As a result the option scheme within Superdielectrics Ltd was terminated and replaced within Superdielectrics Group Plc. All of the terms per the original scheme were kept the same including original grant date and vesting periods. Subsequently this has not led to any increase in benefit by the option holders and there is no increase in fair value of the options resulting in no uplift of the fair value originally calculated on the grant date.
The options will be equity settled and exercisable within the parent company, however, as the services are received within Superdielectrics Ltd this is ultimately where the expense is incurred and recognised. Any further vesting of the options will result in an expense to the income statement with a corresponding increase in equity.
The outstanding options at the year end were granted at various dates being November 2020, December 2020 and August 2021. Those options granted in November 2020 vested immediately with those granted in August 2021 vesting dependent upon service length. Total contractual life of the employee options is 10 years. Total options originally granted were 458,638 exercisable at £4.50 per share however upon the group reconstruction a share split occurred of 1:20 resulting in these becoming 9,172,760 shares at 0.225pence. Included within this amount are 3,035,820 options held by non-employee option holders which were granted in December 2020, these vested immediately and have an exercise price of 0.225pence. These have a contractual life of 3 years.
Prior to the reconstruction and share split, 7,307,000 options were exercised relating to Directors at 0.0834pence per share and 22,222 options exercised at £4.50 per share.
As at the previous year end, being 31 March 2021, and prior to the share split there were 7,307,000 options fully vested exercisable at 0.083pence per share, 66,666 options fully vested exercisable at £4.50 per share and 151,791 options to non-employees exercisable at £4.50 per share.
In determining the fair value op the options, t
he weighted average fair value of options granted in the year was determined using the Black-Scholes option pricing model. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirements to exercise within a short period after the employee becomes entitled to the shares (the "vesting date").
The expected life used in the model has been adjusted, based on management's best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations.
Non-vesting conditions and market conditions are taken into account when estimating the fair value of the option at grant date. Service conditions and non-market performance conditions are taken into account by adjusting the number of options expected to vest at each reporting date.
2022
2021
as restated
£
£
Expenses
Related to equity settled share based payments
-
95,799
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 26 -
22
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of 0.001p each
60,255,505
52,460,728
603
524
23
Share premium account
2022
2021
£
£
At the beginning of the year
14,506,945
1,399,490
Prior year adjustment
(121,737)
-
As restated
14,385,208
1,399,490
Issue of new shares
2,699,865
12,985,718
At the end of the year
17,085,073
14,385,208
24
Equity reserve
2022
2021
£
£
At the beginning of the year
559,722
342,187
Other movements
(374,120)
217,535
At the end of the year
185,602
559,722
The Equity reserve relates to the share options reserve, the movement in the year relates to those options which were exercised. The balance outstanding at the year end relates to the options which are exercisable within the Company's parent Superdielectrics Group Plc.
25
Other leasing information
Lessee
Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:
2022
2021
£
£
Expense relating to short-term leases
155,881
21,524
Information relating to lease liabilities is included in note 19.
26
Capital risk management
The company is not subject to any externally imposed capital requirements.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 27 -
27
Events after the reporting date
After the year end there were 2,240,000 further share options issued to employees at 0.25pence per share, the options vest based on service length with the vesting beginning from November 2025. Furthermore after the year end 1,820,100 of options held at the year end have lapsed due to employees leaving. There is no impact on the financial statement figures as a result of this.
28
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24
Related Party Disclosures
.
2022
2021
£
£
Short-term employee benefits
632,932
291,960
Share-based payments
95,799
632,932
387,759
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Parent company
1,000
-
Subsidiaries
400
200
1,400
200
Amounts owed by the parent company is comprised of an intercompany loan account of £1,000 (2021: £nil).
The intercompany loan account is to cover bank charges on the parent company's bank account and is repayable on demand. No interest is accrued on this balance.
29
Controlling party
The Company's immediate and ultimate parent undertaking is Superdielectrics Group Plc. The registered office is the same as of Superdielectrics Ltd.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 28 -
30
Cash absorbed by operations
2022
2021
£
£
Loss for the year before income tax
(3,840,369)
(859,150)
Adjustments for:
Finance costs
26,309
-
Investment income
(5,236)
Gain on disposal of property, plant and equipment
(34,684)
Depreciation and impairment of property, plant and equipment
360,353
22,724
Equity settled share based payment expense
-
217,535
Movements in working capital:
Increase in trade and other receivables
(575,128)
(225,543)
Increase in trade and other payables
755,510
227,492
Cash absorbed by operations
(3,313,245)
(616,942)
31
First time adoption of IFRS
These financial statements, as at and for the year ended 31 March 2022, are the first the Company has prepared in accordance with IFRS. For periods up to and including the year ended 31 March 2021, the Company prepared its financial statements in accordance with local generally accepted accounting principles (FRS 102).
Accordingly, the Company has prepared financial statements that comply with IFRS applicable as at 31 March 2022, together with comparative period data for the year ended 31 March 2021 as described in the summary of significant accounting policies. In preparing the financial statements, the Company's opening statement of financial position was prepared as at 1 April 2020, the Company's date of transition to IFRS. This note explains the principal adjustments made by the Company in restating its Local GAAP financial statements, including the statement of financial position as at 1 April 2020 and the financial statement as of, and for, the years ended 31 March.
IFRS has been applied retrospectively with the exception of the mandatory exceptions for which IFRS is applied prospectively from the date of transition. Further details of the retrospective adjustments are included in the below reconciliation.
Reconciliations between local GAAP and IFRS have been presented on the pages following. Only reconciliations for the year ended 31st March 2021 have been provided for the Statement of Comprehensive Income and the Statement of Financial Position. This is due to there being no adjustments necessary for the years ended 31 March 2020 and 31 March 2019 in respect of the transition to IFRS.
SUPERDIELECTRICS LIMITED
RECONCILIATION ON ADOPTION OF IFRS
AS AT
31 MARCH 2022
31 March 2022
31
First time adoption of IFRS
(Continued)
- 29 -
RECONCILLIATION OF STATEMENT OF FINANCIAL POSITION AS AT THE 1 APRIL 2020
(1)
(3)
Previously reported
Prior year adjustment
Reclassifications
Effect of transition
As restated
£
£
£
£
£
Non-current assets
Tangible assets
10,230
-
(10,230)
-
-
Property, plant and equipment
-
-
10,230
-
10,230
Investments
15
-
-
15
Other receivables
-
-
-
-
-
10,245
-
-
-
10,245
Current assets
Debtors falling due after more than one year
-
-
-
-
-
Trade and other receivables
-
-
99,523
-
99,523
Debtors falling due within one year
99,523
-
(99,523)
-
-
Cash and cash equivalents
182,294
182,294
Cash at bank and in hand
182,294
-
(182,294)
-
-
Total assets
281,817
-
-
-
281,817
Creditors due within one year
Creditors: amounts falling due within one year
(28,348)
-
28,348
-
-
Trade and other payables
-
-
(28,348)
-
(28,348)
(28,348)
-
-
(28,348)
Net current assets
253,469
-
-
253,469
Total assets less current liabilities
263,714
-
-
263,714
Net assets
263,714
-
-
263,714
Equity
Share capital
492
-
-
492
Share premium
1,399,490
-
-
1,399,490
Equity reserve
111,948
230,239
(342,187)
-
-
Profit and loss
(1,248,216)
(230,239)
1,478,455
-
-
Accumulated deficit
-
-
(1,136,268)
-
(1,136,268)
Total equity
263,714
-
-
263,714
SUPERDIELECTRICS LIMITED
RECONCILIATION ON ADOPTION OF IFRS (CONTINUED)
AS AT
31 MARCH 2022
31 March 2022
31
First time adoption of IFRS
(Continued)
- 30 -
RECONCILLIATION OF STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021
(2)
(3)
Previously reported
Prior year adjustment
Reclassifications
Effect of transition
As restated
£
£
£
£
£
Non-current assets
Tangible assets
155,598
-
(155,598)
-
-
Property, plant and equipment
-
-
155,598
391,065
546,663
Investments
15
-
-
15
155,613
-
-
391,065
546,678
Current assets
Trade and other receivables
-
345,926
-
345,926
Debtors falling due within one year
345,926
-
(345,926)
-
-
Cash at bank and in hand
-
-
12,402,047
-
12,402,047
Cash and cash equivalents
12,402,047
-
(12,402,047)
-
-
Total assets
12,903,586
-
-
-
13,294,651
Creditors due within one year
-
-
-
Lease liabilities - current
-
-
(110,389)
(110,389)
Creditors: amounts falling due within one year
(255,840)
-
255,840
-
-
Trade Payables
-
-
(255,840)
-
(255,840)
(255,840)
-
-
(110,389)
(366,229)
Net current assets
12,647,746
-
-
(110,389)
12,381,744
Creditors due after one year
Lease liabilities - non current
-
-
(299,714)
(299,714)
Net assets
12,647,746
-
-
(299,714)
12,628,708
Equity
Share capital
524
-
-
524
Share premium
14,506,945
(121,737)
-
14,385,208
Equity reserve
-
-
(559,722)
-
-
Profit and loss
(2,419,445)
121,737
2,297,708
-
Accumulated deficit
-
(1,737,986)
(19,038)
(1,757,024)
Total equity
12,088,024
-
-
-
12,628,708
SUPERDIELECTRICS LIMITED
RECONCILIATION ON ADOPTION OF IFRS (CONTINUED)
AS AT
31 MARCH 2022
31 March 2022
31
First time adoption of IFRS
(Continued)
- 31 -
RECONCILLIATION OF STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021
(2)
(3)
Previously reported
Prior year adjustment
Reclassifications
Effect of transition
As restated
£
£
£
£
£
Administrative expenses
(961,849)
121,737
(19,038)
(859,150)
Operating loss
(961,849)
121,737
(19,038)
(859,150)
Loss before taxation
(961,849)
121,737
(19,038)
(859,150)
Income tax income
-
-
(20,859)
-
-
Income tax benefit
20,859
20,859
Loss after taxation
(961,849)
121,737
(19,038)
(838,291)
Notes to reconciliations
The adjustments detailed above are in respect of the following:
(1)
During the 2021 year end it was identified that there was a prior period error in relation to the 2020 year end relating to the incorrect valuation of share based payments going through the income statement. As material this was thus adjusted for as a restatement bringing an amount of £230,239 into the share based payment equity reserve and removing a corresponding amount from the income statement.
(2)
During the 2022 year end management implemented a change of accounting policy in respect of the recognition of the allocation of costs for the issue of share warrants. Previously management expensed such costs to the profit or loss however during the most recent financial year have chosen to allocate costs against the share premium account. As such a restatement journal has been posted to reallocate £121,737 of costs going through the income statement against the share premium account within equity.
Effect of transition to IFRS
Leases
(3)
Only transitional adjustment relates to leases. Under Local GAAP, a lease is classified as a finance lease or an operating lease. Operating lease payments are recognised as an operating expense in the statement of profit or loss on a straight-line basis over the lease term. Under IFRS, a lessee applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets and recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. At the date of transition to IFRS, the Company applied the transitional provision and measured lease liabilities at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate at the date of transition to IFRS. Right-of-use assets were measured at the amount equal to the lease liabilities adjusted by the amount of any prepaid or accrued lease payments. As a result, the Company recognised an increase of lease liabilities and right of use assets of £410,102 during the 31 March 2021 year end.
Depreciation of £314,370 (2020 £19,037) in respect of right of use assets has been recognised in the statement of comprehensive income.
2022-03-31
2021-04-01
false
CCH Software
CCH Accounts Production 2022.200
Mr F J Heathcote
Dr D J Highgate
Mr N A Spence
Mr I Wright
Mr W P S Richards
M A Spencer
M A Spencer
Mr Marcus Scott
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