Company Registration No. SC307569 (Scotland)
QUARCH TECHNOLOGY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
PAGES FOR FILING WITH REGISTRAR
QUARCH TECHNOLOGY LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 8
QUARCH TECHNOLOGY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2019
31 August 2019
- 1 -
2019
2018
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
43,208
72,945
Investments
6
275,179
-
318,387
72,945
Current assets
Inventories
274,712
251,680
Trade and other receivables
7
851,236
973,750
Cash and cash equivalents
1,850,988
1,959,801
2,976,936
3,185,231
Current liabilities
8
(197,374)
(200,494)
Net current assets
2,779,562
2,984,737
Total assets less current liabilities
3,097,949
3,057,682
Provisions for liabilities
(8,209)
(13,859)
Net assets
3,089,740
3,043,823
Equity
Called up share capital
10
200
200
Share premium account
13,700
13,700
Retained earnings
3,075,840
3,029,923
Total equity
3,089,740
3,043,823
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 August 2019 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 members have 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.
QUARCH TECHNOLOGY LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 AUGUST 2019
31 August 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on
4 November 2019 and are signed on its behalf by:
2019-11-25
Mr M Dearman
Director
Company Registration No. SC307569
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
- 3 -
1
Company Information
Quarch Technology Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Unit 7 Dalfaber Industrial Estate, Dalfaber Drive, Aviemore, Inverness-shire, PH22 1ST.
2
Compliance with accounting standards
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
pounds sterling
, which is the functional currency of the company
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
3
Accounting policies
3.1
Revenue
Turnover represents the value of sales to customers, net of discounts
and other payments to customers and excludes VAT. Sales of
goods or
services are recognised when the company has provided the
goods or
service
s
to the customer and collectability of the related receivable is reasonably assured.
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
.
3.2
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:
Plant and equipment
25% straight line
Fixtures, fittings and equipment
25% straight line
Computer equipment
33% straight line
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
3
Accounting policies
(Continued)
- 4 -
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
.
Listed investments are valued at market price.
3.3
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
3.4
Basic 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 statement of financial position 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.
3.5
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 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
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and the law enacted or substantively enacted at the balance sheet date.
3.6
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 non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
3
Accounting policies
(Continued)
- 5 -
3.7
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
3.8
Share-based payments
For cash-settled share-based payments, a liability is recognised for the goods and services acquired, measured initially at the fair value of the liability. At the balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit or loss for the year.
3.9
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.
3.10
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
measured
at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.
3.11
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.
3.12
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was 14 (2018 - 10).
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
- 6 -
5
Property, plant and equipment
Plant and machinery etc
£
Cost
At 1 September 2018
145,514
Additions
1,416
At 31 August 2019
146,930
Depreciation and impairment
At 1 September 2018
72,569
Depreciation charged in the year
31,153
At 31 August 2019
103,722
Carrying amount
At 31 August 2019
43,208
At 31 August 2018
72,945
6
Fixed asset investments
2019
2018
£
£
Investments
275,179
-
Movements in non-current investments
Investments other than loans
£
Cost or valuation
At 1 September 2018
-
Additions
250,000
Valuation changes
25,179
At 31 August 2019
275,179
Carrying amount
At 31 August 2019
275,179
At 31 August 2018
-
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
- 7 -
7
Trade and other receivables
2019
2018
Amounts falling due within one year:
£
£
Trade receivables
326,846
424,907
Other receivables
524,390
548,843
851,236
973,750
8
Current liabilities
2019
2018
£
£
Trade payables
56,017
90,346
Corporation tax
85,596
63,587
Other taxation and social security
12,662
10,267
Other payables
43,099
36,294
197,374
200,494
9
Share-based payment transactions
Number of share options
Weighted average exercise price
2019
2018
2019
2018
Number
Number
£
£
Outstanding at 1 September 2018
-
-
-
-
Granted
5,000
-
-
-
Forfeited
(253)
-
-
-
Outstanding at 31 August 2019
4,747
-
-
-
Exercisable at 31 August 2019
-
-
-
-
The options outstanding at 31 August 2019 had an exercise price of £90, and a remaining contractual life of 5 years.
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
- 8 -
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
693 A Ordinary shares of 20p each
-
139
297 B Ordinary shares of 20p each
-
59
7 C Ordinary shares of 20p each
-
1
3 D Ordinary shares of 20p each
-
1
69,300 A Ordinary shares of 0.2p each
139
-
29,700 B Ordinary shares of 0.2p each
59
-
700 C Ordinary shares of 0.2p each
1
-
300 D Ordinary shares of 0.2p each
1
-
200
200
During the year the company reclassified its shares to:-
693 A ordinary shares of 20p each to 69,300 A ordinary shares of 0.002p each
297 B ordinary shares of 20p each to 29,700 B ordinary shares of 0.002p each
7 C ordinary shares of 20p each to 700 B ordinary shares of 0.002p each
3 D ordinary shares of 20p each to 300 D ordinary shares of 0.002p each
11
Operating lease commitments
Lessee
At the reporting end date the company had the following outstanding commitments for future minimum lease payments under non-cancellable operating leases:
2019
2018
£
£
539,028
472,000
12
Related party transaction
At 31 August 2018 Nordman Property Ltd, a connected company, owed Quarch Technology Limited £497,872. During the year Nordman Property Ltd repaid Quarch Technology Limited £35,000 which included interest totalling £11,939. At 31 August 2019, Nordman Property Ltd owed Quarch Technology Limited £474,811. The loan is secured and carries interest at 2.5%, it has no fixed terms of repayment.
During the year the company rented a property from a connected party, Nordman Property Ltd, at arms length rent. The total rent paid in the year was £61,999 (2018 - £59,000).
During the year the company paid dividends totalling £749,999 (2018 - £186,000) to the directors.