Company Registration No. 11622114 (England and Wales)
CO2 EXTRACTION LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
PAGES FOR FILING WITH REGISTRAR
CO2 EXTRACTION LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
Notes to the financial statements
3 - 10
CO2 EXTRACTION LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2021
31 October 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
5
95
139
Tangible assets
6
935,228
935,318
935,323
935,457
Current assets
Debtors
7
6,009
6,449
Cash at bank and in hand
12,019
104,504
18,028
110,953
Creditors: amounts falling due within one year
8
(309,513)
(275,490)
Net current liabilities
(291,485)
(164,537)
Total assets less current liabilities
643,838
770,920
Creditors: amounts falling due after more than one year
9
(47,194)
(50,000)
Net assets
596,644
720,920
Capital and reserves
Called up share capital
10
1,000
1,000
Share premium account
12
114,800
114,800
Revaluation reserve
11
831,115
831,115
Profit and loss reserves
13
(350,271)
(225,995)
Total equity
596,644
720,920
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
CO2 EXTRACTION LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2021
31 October 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 20 January 2022 and are signed on its behalf by:
M A Flanagan
Director
Company Registration No. 11622114
CO2 EXTRACTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
- 3 -
1
Accounting policies
Company information
CO2 Extraction Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
26 Grosvenor Street, Mayfair, London, United Kingdom, W1K 4QW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, The directors have a reasonable expectation that the company has adequate resources to continue operational existence for the foreseeable future. Thus the Directors continue to adopt the the going concern basis of accounting in preparing the financial statements, based upon the continuing support of the creditors. Should this support cease, then the going concern basis would no longer be appropriate and adjustments would have to be made to reflect this.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
CO2 EXTRACTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 4 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademarks
Straight line over 5 years
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
Staight line over 10 years
Office equipment
Straight line over 5 years
Fixtures and fittings
Straight line over 5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
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.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
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. Bank overdrafts are shown within borrowings in current liabilities.
CO2 EXTRACTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 5 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
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.
CO2 EXTRACTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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
profit and loss account
, 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.
During the year, Research and Development credit refund was received of £11,522, This is shown as Tax on Loss on the Profit and Loss account.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
CO2 EXTRACTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 7 -
2
Judgements and key sources of estimation uncertainty
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Exceptional item
2021
2020
£
£
Income
Government Grant
11,060
10,000
This relates to a grant received from the Lancaster Council discretionary grant fund which aims to provide assistance and support to eligible local businesses affected by the pandemic.
This is non refundable.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
1
1
5
Intangible fixed assets
Other
£
Cost
At 1 November 2020 and 31 October 2021
220
Amortisation and impairment
At 1 November 2020
81
Amortisation charged for the year
44
At 31 October 2021
125
Carrying amount
At 31 October 2021
95
At 31 October 2020
139
CO2 EXTRACTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
5
Intangible fixed assets
(Continued)
- 8 -
Intangible Assets consist of Trademarks registered in the
previous
year.
6
Tangible fixed assets
Plant and machinery
Office equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 November 2020
930,000
920
5,257
936,177
Additions
1,403
1,403
At 31 October 2021
930,000
920
6,660
937,580
Depreciation and impairment
At 1 November 2020
215
644
859
Depreciation charged in the year
184
1,309
1,493
At 31 October 2021
399
1,953
2,352
Carrying amount
At 31 October 2021
930,000
521
4,707
935,228
At 31 October 2020
930,000
705
4,613
935,318
Plant and Equipment has not been depreciated as it
was still under construction during the year. A quotation was received from SciMed Ltd on 31 March 2021 valuing the plant and machinery at £930,000.
7
Debtors
2021
2020
Amounts falling due within one year:
£
£
Other debtors
6,009
6,449
Other debtors is made up of the following:
i.) £
2,243
of VAT recoverable at year end.
CO2 EXTRACTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 9 -
8
Creditors: amounts falling due within one year
2021
2020
£
£
Other borrowings
270,237
260,504
Trade creditors
35,882
4,186
Taxation and social security
3,394
Accruals and deferred income
10,800
309,513
275,490
i) Other borrowing
s
refers to funds loaned to the company by Wilton UK Group Ltd. On 14 October 2018 the company received a loan from Wilton UK Group Ltd. The loan was in the amount of £150,000, interest free and repayable on demand. However the loan agreement was amended on 16 September 2021 to increase this facility to £300,000 on the same terms as previously agreed.
The balance stands at £260,237.
ii) Within other borrowings is £10,000 payable due to Artisan Hotels Limited The loan is unsecured, interest free and has no fixed date of repayment.
During 2020 the company had loaned £2,500 to Artisan Hotels.
iii) Trade Creditors relates
to supplier Invoices which were settled after year end.
iv)
Accruals have been made for professional and accountancy fees rendered by Wilton.
9
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other creditors
47,194
50,000
This relates to the bounce back loan received from the government
in 2020
which enabled smaller businesses to access finance more quickly during the coronavirus outbreak. The government guarantee
d
100% of the loan and there w
as not
any fees or interest to pay for the first 12 months. After 12 months the interest rate
is
2.5% a year. Repayments
have started from
July 2021
as reflected above.
10
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 1p each
100,000
100,000
1,000
1,000
CO2 EXTRACTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 10 -
11
Revaluation reserve
2021
2020
£
£
At the beginning of the year
831,115
Revaluation surplus arising in the year
831,115
At the end of the year
831,115
831,115
The plant and machinery was revalued during the year
2020
to a replacement value of £930,000. This
was
based on a quotation received from Scimed Ltd on 31 March 2021.
12
Share premium account
2021
2020
£
£
At the beginning of the year
114,800
Issue of new shares
114,800
At the end of the year
114,800
114,800
During the
previous
year the following shares were issued:
5,000 Ordinary shares of 1p each for a consideration of £50,000
(Premium £49,950)
- Patrick O'Sullivan
5,000 Ordinary shares of 1p each for a consideration of £50,000
(Premium £49,950)
- Susan Margaret Garwood
100 Ordinary shares of £1 each for a consideration of £15,000
(Premium £14,900) - Wilton UK (Group) Limited
13
Profit and loss reserves
2021
2020
£
£
At the beginning of the year
(225,995)
(111,563)
Loss for the year
(124,276)
(114,432)
At the end of the year
(350,271)
(225,995)