Company registration number 08536866 (England and Wales)
SUPERDIELECTRICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
SUPERDIELECTRICS LIMITED
COMPANY INFORMATION
Directors
Mr F J Heathcote
Mr Marcus Scott
Secretary
Mr Marcus Scott
Company number
08536866
Registered office
The Mansion
Chesterford 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 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 - 8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 31
SUPERDIELECTRICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
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
Mr I Wright
(Resigned 15 August 2022)
Mr Marcus Scott
M A Spencer
(Resigned 15 August 2022)
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
17 August 2023
SUPERDIELECTRICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 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 2023 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 2023 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' report 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 identified material misstatements in the directors' report.
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' responsibilities statement, 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
22 August 2023
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 2023
- 6 -
2023
2022
as restated
Notes
£
£
Administrative expenses
(4,180,015)
(3,819,296)
Operating loss
5
(4,180,015)
(3,819,296)
Investment revenues
8
49,696
5,236
Finance costs
9
(27,247)
(26,309)
Loss before taxation
(4,157,566)
(3,840,369)
Income tax income
10
348,463
317,841
Loss and total comprehensive income for the year
(3,809,103)
(3,522,528)
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 2023
31 March 2023
- 7 -
2023
2022
as restated
Notes
£
£
Non-current assets
Property, plant and equipment
11
2,151,562
2,574,174
Investments
12
16
16
2,151,578
2,574,190
Current assets
Trade and other receivables
14
619,897
809,995
Current tax recoverable
666,304
338,700
Cash and cash equivalents
7,478,013
9,587,313
8,764,214
10,736,008
Current liabilities
Trade and other payables
18
1,982,742
1,011,350
Lease liabilities
19
104,865
96,067
2,087,607
1,107,417
Net current assets
6,676,607
9,628,591
Non-current liabilities
Lease liabilities
19
305,065
396,657
Net assets
8,523,120
11,806,124
Equity
Called up share capital
22
603
603
Share premium account
23
17,085,073
17,085,073
Equity reserve
24
711,701
185,602
Retained earnings
(9,274,257)
(5,465,154)
Total equity
8,523,120
11,806,124
The notes on pages 11 to 31 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
SUPERDIELECTRICS LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 8 -
The financial statements were approved by the board of directors and authorised for issue on 17 August 2023 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 2023
- 9 -
Share capital
Share premium account
Equity reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
524
14,506,945
559,722
(2,316,746)
12,750,445
Prior period correction
-
(121,737)
-
-
(121,737)
Restated Balance at 1 April 2021
524
14,385,208
559,722
(2,316,746)
12,628,708
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
-
(3,722,822)
(3,722,822)
Transactions with owners in their capacity as owners:
Issue of share capital
22
79
2,699,865
-
-
2,699,944
Share options exercised
-
-
(374,120)
374,120
-
Balance at 31 March 2022, as previously reported
603
17,085,073
185,602
(5,665,448)
11,605,830
Prior period correction
-
-
-
200,294
200,294
Restated balance at 31 March 2022
603
17,085,073
185,602
(5,465,154)
11,806,124
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
(3,809,103)
(3,809,103)
Transactions with owners in their capacity as owners:
Share options granted
-
-
526,099
-
526,099
Balance at 31 March 2023
603
17,085,073
711,701
(9,274,257)
8,523,120
SUPERDIELECTRICS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(1,932,161)
(3,313,245)
Income taxes refunded
20,859
90,199
Net cash outflow from operating activities
(1,911,302)
(3,223,046)
Investing activities
Purchase of property, plant and equipment
(123,260)
(2,164,944)
Purchase of subsidiaries
(1)
Interest received
49,696
5,236
Net cash used in investing activities
(73,564)
(2,159,709)
Financing activities
Proceeds from issue of shares
-
2,804,693
Share issue costs
-
(104,749)
Payment of lease liabilities
(124,434)
(131,923)
Net cash (used in)/generated from financing activities
(124,434)
2,568,021
Net decrease in cash and cash equivalents
(2,109,300)
(2,814,734)
Cash and cash equivalents at beginning of year
9,587,313
12,402,047
Cash and cash equivalents at end of year
7,478,013
9,587,313
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 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 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, 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 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 2023
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 recognises 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, trade 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 2023
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 2023
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 graded vesting basis over the vesting period, based on the estimate of shares that will eventually vest. Share options are issued by the parent Company Superdielectrics Group Plc and are exercisable within the parent entity, the options issued are in relation to services provided by employees of Superdielectrics Ltd and are credited to the equity reserve as a capital contribution.
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.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
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.
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
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.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
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:
IFRS 17
Insurance Contracts (effective for periods beginning on or after 1 January 2023)
IAS 1 (amendments)
Presentation of Financial Statements - Practice Statement 2 (effective for periods beginning on or after 1 January 2023)
IAS 8 (amendments)
Accounting Policies, Changes in Accounting Estimates and Errors (effective for periods beginning on or after 1 January 2023)
IAS 12 (amendments)
Deferred Tax related to Assets and Liabilities arising from Single Transaction (effective for periods beginning on or after 1 January 2023)
IAS 16 (amendments)
Leases on sale and leaseback (effective for periods beginning on or after 1 January 2024)
IAS 1 (amendments)
Presentation of Financial Statements - Classification of Liabilities as Current or Non-Current (effective for periods beginning on or after 1 January 2024)
IAS 1 (amendments)
Presentation of Financial Statements - Non-current Liabilities with Covenants (effective for periods beginning on or after 1 January 2024)
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 2023
- 17 -
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
During the year ended 31st March 2023, Superdielectrics Group Plc granted 6,852,000 share options to employees of Superdielectrics Ltd. The options have an exercise price of 0.23pence per option. The options are exercisable within Superdielectrics Group Plc, however, as the holders are employees of Superdielectrics Ltd and the services are being rendered within this Company, consequently the share based payment expense charge is recognised through the income statement of Superdielectrics Ltd with a corresponding value to equity.
The fair value of the warrants and options was determined based on the Black-Scholes option pricing model taking into account the following assumptions:
Fair value of shares of Parent entity | |
| |
| |
| |
Further explanations of the key assumptions above are as follows:
Share price: As the Parent Company’s shares are not publicly traded as of 31 March 2023, 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 2023, the expected price volatility for the shares was estimated using a standard deviation technique based on movements in share price in addition to considering volatility of Companies within the AIM listing.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
4
Exceptional items
During the year-ended 31 March 2022 and 31 March 2023, a significant amount of costs were incurred in respect of the restructuring of the group, as well as fees in relation to the potential initial public offering of its parent company, Superdielectrics Group Plc. Total costs expensed during the year were approximately £130k (2022: approximately £700k). These are recognised within administrative expenses and are not considered to be annual recurring costs going forwards.
5
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Research and development costs
566,607
618,679
Fees payable to the company's auditor for the audit of the company's financial statements
28,770
13,000
Depreciation of property, plant and equipment
560,265
360,353
Profit on disposal of property, plant and equipment
-
(34,684)
Share-based payments
526,099
217,535
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
6
6
Other
18
15
Total
24
21
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,743,461
1,086,552
Social security costs
140,496
118,068
Pension costs
79,499
9,647
1,963,456
1,214,267
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
7
Directors' remuneration
2023
2022
As restated
£
£
Remuneration for qualifying services
322,500
499,244
Company pension contributions to defined contribution schemes
29,167
351,667
499,244
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 0).
The number of directors who are entitled to receive shares under long term incentive schemes during the year was 1 (2022 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
200,000
200,000
8
Investment income
2023
2022
£
£
Interest income
Financial instruments measured at amortised cost:
Bank interest received
49,696
5,236
Income above relates to assets held at amortised cost, unless stated otherwise.
9
Finance costs
2023
2022
£
£
Interest on lease liabilities
27,247
26,309
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
10
Income tax credit
2023
2022
as restated
£
£
Current tax
UK corporation tax on profits for the current period
(348,463)
(317,841)
The charge for the year can be reconciled to the loss per the income statement as follows:
2023
2022
as restated
£
£
Loss before taxation
(4,157,566)
(3,840,369)
Expected tax credit based on a corporation tax rate of 19.00% (2022: 19.00%)
(789,938)
(729,670)
Effect of expenses not deductible in determining taxable profit
101,690
29
Change in unrecognised deferred tax assets
656,711
681,418
Permanent capital allowances in excess of depreciation
(9,376)
(18,746)
Research and development tax credit
(348,463)
Additional deduction for R&D expenditure
(258,082)
(87,059)
Remeasurement of deferred tax for changes in tax rates
(157,611)
Surrender of tax losses for R&D tax credit refund
456,606
(163,813)
Taxation credit for the year
(348,463)
(317,841)
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 £7,502,367 (2022: £5,108,083) are available for relief against future profits. No deferred tax asset has been provided for in the accounts based on the estimated tax losses.
11
Property, plant and equipment
Leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2021
410,103
106,051
1,783
52,380
570,317
Additions
2,402,417
194,554
27,014
1,695
43,354
2,669,034
Disposals
(281,170)
(281,170)
At 31 March 2022
2,531,350
300,605
27,014
3,478
95,734
2,958,181
Additions
16,309
118,619
2,725
137,653
At 31 March 2023
2,547,659
419,224
29,739
3,478
95,734
3,095,834
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Property, plant and equipment
Leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
(Continued)
- 21 -
Accumulated depreciation and impairment
At 1 April 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
Charge for the year
496,439
38,106
5,687
1,159
18,874
560,265
At 31 March 2023
829,847
61,804
11,093
2,417
39,111
944,272
Carrying amount
At 31 March 2023
1,717,812
357,420
18,646
1,061
56,623
2,151,562
At 31 March 2022
2,197,942
276,907
21,608
2,220
75,497
2,574,174
Leasehold properties comprise solely of Right of Use Assets.
12
Investments
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Investments in subsidiaries
16
16
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 2023
- 22 -
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Principal activities
Class of
% Held
shares held
Direct
Supercapacitor Materials Ltd
Dormant
Ordinary
100.00
Superdielectrics Electric Industrial Products Ltd
Dormant
Ordinary
100.00
Superdielectrics Vertical Farming Ltd
Dormant
Ordinary
100.00
Superdielectrics Electric Ships Ltd
Dormant
Ordinary
100.00
Superdielectrics Mobile Electronics Ltd
Dormant
Ordinary
100.00
Superdielectrics Motorsport Ltd
Dormant
Ordinary
100.00
Superdielectrics Electric Trains Ltd
Dormant
Ordinary
100.00
Superdielectrics Grid Power Management Ltd
Dormant
Ordinary
100.00
Superdielectrics Autonomous Flying Vehicles Ltd
Dormant
Ordinary
100.00
Superdielectrics Automotive Ltd
Dormant
Ordinary
100.00
Superdielectrics Electric Household Products Ltd
Dormant
Ordinary
100.00
Superdielectrics Electric Aircraft Ltd
Dormant
Ordinary
100.00
Superdielectrics Rapid Refuelling Ltd
Dormant
Ordinary
100.00
Superdielectrics Renewable Energy Storage Ltd
Dormant
Ordinary
100.00
Superdielectrics Research Ltd
Dormant
Ordinary
100.00
Superdielectrics Electric Bicycles Ltd
Dormant
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
2023
2022
£
£
VAT recoverable
46,211
76,736
Amounts owed by subsidiary undertakings
1,800
1,400
Other receivables
89,455
100,249
Prepayments
482,431
631,610
619,897
809,995
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
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 £7,574,750 (2022: £9,671,850).
Financial Liabilities
The Company hold financial liabilities measured at amortised cost. At the year-end the carrying amount of these financial liabilities totalled £714,232 (2022 as restated: £1,461,935). 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 2023
- 24 -
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 31 March 2022
Trade payables
285,342
-
-
-
285,342
Accruals
683,855
-
-
-
683,855
Lease liabilities
-
30,069
90,207
433,755
554,031
969,197
30,069
90,207
433,755
1,523,228
At 31 March 2023
Trade payables
208,663
-
-
-
208,663
Accruals
95,624
-
-
-
95,624
Lease liabilities
-
31,703
92,731
333,762
458,196
304,287
31,703
92,731
333,762
762,483
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 2023, this totalled £1,045,107 (2022 as restated: £2,218,811).
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.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
18
Trade and other payables
2023
2022
£
£
Trade payables
208,663
285,342
Amount owed to parent undertaking
1,633,000
Accruals
95,624
683,855
Social security and other taxation
45,440
42,138
Other payables
15
15
1,982,742
1,011,350
19
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
124,435
120,276
In two to five years
333,762
433,755
Total undiscounted liabilities
458,197
554,031
Future finance charges and other adjustments
(48,267)
(61,307)
Lease liabilities in the financial statements
409,930
492,724
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:
2023
2022
£
£
Current liabilities
104,865
96,067
Non-current liabilities
305,065
396,657
409,930
492,724
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
27,247
26,309
Other leasing information is included in note 26.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
79,499
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.
21
Share-based payments
Number of share options
Average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 April 2022
6,136,940
8,640,320
0.23
0.11
Granted in the period
6,852,000
5,248,060
0.23
0.23
Forfeited in the period
(2,024,100)
0.23
Exercised in the period
(7,751,440)
0.09
Outstanding at 31 March 2023
10,964,840
6,136,940
0.23
0.23
Exercisable at 31 March 2023
5,555,533
888,880
0.23
0.23
Options granted during the year
Options granted to employees in the year are set out below. Fair value was measured using the indirect method valuing the equity instruments themselves. The the Black-Scholes model was used as the 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.
2023
Weighted average fair value
0.106pence per option
Inputs for model:
- Weighted average share price
0.25pence
- Weighted average exercise price
0.23pence
- Expected volatility
20%
- Expected life
10 years
- Risk free rate
1.30%-4.31%
Volatility was calculated based on the share price volatility over a similar period preceding the grant date in addition to considering volatility within listed companies.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Share-based payments
(Continued)
- 27 -
During the March 2022 year end 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 as a capital contribution.
The outstanding options at the year end were granted at various dates. This being:-
- 888,880 options were granted in November 2020 which vested immediately.
- 1,999,960 options were granted in July 2021, the vesting period is based upon a service condition with the options vesting over 3 years from the date of grant.
- 1,224,000 options were granted in August 2021, the vesting period is based upon a service condition with the options vesting over 6 years from the date of grant in 3 equal tranches. The first tranche being upon the 4th year of service from the date of grant and the remaining tranches on each subsequent year.
- 2,652,000 options were granted throughout the 2023 financial year end, the vesting periods are based upon service conditions with the options vesting over 6 years from the date of grant in 3 equal tranches. The first tranche being upon the 4th year of service from the date of grant and the remaining tranches on each subsequent year.
- 4,000,000 options were granted in June 2022, which vested immediately.
- 200,000 options were granted to a company, defined as an employee under IFRS, these options vest from July 2025 over 3 years.
All share options issued have a life of 10 years.
Equity instruments other than share options
During 2020 3,035,820 of equity instruments other than share options were granted. The weighted average fair value of those instruments at the measurement date was £121,736. The equity instruments were issued to a holder other than an employee and vested immediately upon grant date. The equity instruments are therefore fully exercisable as at 31st March 2023. The fair value was determined using the indirect method due to the fair value of the services not being able to be determined. The Black Scholes model was used to value the equity instruments.
Expenses
Related to equity settled share based payments
526,099
-
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of 0.1p each
60,255,000
60,255,505
603
603
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
23
Share premium account
2023
2022
£
£
At the beginning of the year
17,085,073
14,506,945
Prior year adjustment
-
(121,737)
As restated
17,085,073
14,385,208
Issue of new shares
-
2,699,865
At the end of the year
17,085,073
17,085,073
24
Equity reserve
2023
2022
£
£
At the beginning of the year
185,602
559,722
Other movements
526,099
(374,120)
At the end of the year
711,701
185,602
The Equity reserve relates to the share options reserve, the movement in the year relates to those options which were granted (2022: exercised). The balance outstanding at the year end relates to the options whereby the services have rendered and options have or are expected to vest.
25
Financial Commitments
On the 1 October 2014 the company entered into an agreement with the University of Surrey to commence a research project and provide funding to the University. Further extensions have been added to this lease during the financial year. At the year end the Company are committed to pay £175,570 (2022: £nil).
26
Other leasing information
Lessee
Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:
2023
2022
£
£
Expense relating to short-term leases
92,198
155,881
Information relating to lease liabilities is included in note 19.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
27
Capital commitments
2023
2022
£
£
At 31 March 2023 the company had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment
28,019
28
Capital risk management
The company is not subject to any externally imposed capital requirements.
29
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, including directors, is included here since it relates to the Board members of Superdielectrics Group Plc and is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
2023
2022
£
£
Short-term employee benefits
618,895
632,932
Post-employment benefits
29,167
648,062
632,932
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Parent company
1,633,000
Amounts owed to the parent company is comprised of an intercompany loan of £1,633,000. It is repayable on demand with no interest being accrued on this balance.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Parent company
1,000
1,000
Subsidiaries
800
400
1,800
1,400
Amounts owed to the parent company is comprised of an intercompany loan of £1,633,000. It is repayable on demand with no interest being accrued on this balance.
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
30
Controlling party
The Company's immediate and ultimate parent undertaking is Superdielectrics Group Plc. The registered office is the same as of Superdielectrics Ltd.
31
Cash absorbed by operations
2023
2022
£
£
Loss for the year before income tax
(4,157,566)
(3,840,369)
Adjustments for:
Finance costs
27,247
26,309
Investment income
(49,696)
(5,236)
Gain on disposal of property, plant and equipment
(34,684)
Depreciation and impairment of property, plant and equipment
560,265
360,353
Equity settled share based payment expense
526,099
-
Movements in working capital:
Decrease/(increase) in trade and other receivables
190,098
(575,128)
Increase in trade and other payables
971,392
755,510
Cash absorbed by operations
(1,932,161)
(3,313,245)
32
Prior period adjustment
During the year ended 31st March 2023 the income tax credit for 2022 was amended to reflect the actual 2022 income tax credit repayable to the Company. The adjustment of £200,294 was credited to the income statement with the other side increasing debtors. Retained earnings and total equity subsequently also increased by £200,294.
Furthermore during the year ended 31st March 2023, it was identified that dilapidation costs were incorrectly not included within the initial right of use asset and corresponding lease liability upon initial commencement of lease. As this is material, a prior year restatement has been posted to bring in the provision discounted to net present value, this is a reclassification journal only and has increased the right of use asset (property plant and equipment) by £42,858 with a corresponding increase to finance leases.
Changes to the statement of financial position
At 31 March 2022
Previously reported
Adjustment
As restated
£
£
£
Property, plant and equipment
2,531,316
42,858
2,574,174
Current assets
Debtors due within one year
948,401
200,294
1,148,695
Creditors due after one year
Finance leases
(353,799)
(42,858)
(396,657)
Net assets
11,605,830
200,294
11,806,124
SUPERDIELECTRICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
32
Prior period adjustment
At 31 March 2022
Previously reported
Adjustment
As restated
£
£
£
(Continued)
- 31 -
Capital and reserves
Retained earnings
(5,665,448)
200,294
(5,465,154)
Total equity
11,605,830
200,294
11,806,124
Changes to the income statement
Period ended 31 March 2022
Previously reported
Adjustment
As restated
£
£
£
Taxation
117,547
200,294
317,841
Loss for the financial period
(3,722,822)
200,294
(3,522,528)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.100Mr F J HeathcoteDr D J HighgateMr N A SpenceMr I WrightMr W P S RichardsM A SpencerM A SpencerMr Marcus 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