Company Registration No. SC307569 (Scotland)
QUARCH TECHNOLOGY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
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 2021
31 August 2021
- 1 -
2021
2020
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
6
20,335
37,959
Investments
7
258,581
208,136
278,916
246,095
Current assets
Inventories
446,037
331,323
Trade and other receivables
8
1,538,657
897,475
Cash and cash equivalents
1,178,228
1,738,973
3,162,922
2,967,771
Current liabilities
9
(130,326)
(121,459)
Net current assets
3,032,596
2,846,312
Total assets less current liabilities
3,311,512
3,092,407
Provisions for liabilities
(3,863)
(7,212)
Net assets
3,307,649
3,085,195
Equity
Called up share capital
11
200
200
Share premium account
13,700
13,700
Retained earnings
3,293,749
3,071,295
Total equity
3,307,649
3,085,195
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 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 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 2021
31 August 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 9 February 2022 and are signed on its behalf by:
Mr M Dearman
Director
Company Registration No. SC307569
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
- 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
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
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.
4
Accounting policies
4.1
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
.
4.2
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.
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
4
Accounting policies
(Continued)
- 4 -
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
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.
4.3
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.
4.4
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.
4.5
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.
4.6
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 2021
4
Accounting policies
(Continued)
- 5 -
4.7
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
.
4.8
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.
4.9
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.
4.10
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.
4.11
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
.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
17
17
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 6 -
6
Property, plant and equipment
Plant and machinery etc
£
Cost
At 1 September 2020
172,095
Additions
10,941
At 31 August 2021
183,036
Depreciation and impairment
At 1 September 2020
134,136
Depreciation charged in the year
28,565
At 31 August 2021
162,701
Carrying amount
At 31 August 2021
20,335
At 31 August 2020
37,959
7
Fixed asset investments
2021
2020
£
£
Other investments other than loans
258,581
208,136
Movements in non-current investments
Investments
£
Cost or valuation
At 1 September 2020
208,136
Additions
11
Valuation changes
50,445
Disposals
(11)
At 31 August 2021
258,581
Carrying amount
At 31 August 2021
258,581
At 31 August 2020
208,136
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
- 7 -
8
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Trade receivables
335,307
352,651
Corporation tax recoverable
1,590
7,067
Other receivables
1,201,760
537,757
1,538,657
897,475
9
Current liabilities
2021
2020
£
£
Trade payables
46,331
55,691
Taxation and social security
21,543
17,686
Other payables
62,452
48,082
130,326
121,459
10
Share-based payment transactions
Number of share options
Weighted average exercise price
2021
2020
2021
2020
Number
Number
£
£
Outstanding at 1 September 2020 and 31 August 2021
4,747
4,747
Exercisable at 31 August 2021
The options outstanding at 31 August 2021 had an exercise price of £90, and a remaining contractual life of 4 years.
QUARCH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021
10
Share-based payment transactions
(Continued)
- 8 -
11
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
69,300 A Ordinary shares of 0.2p each
139
139
29,700 B Ordinary shares of 0.2p each
59
59
700 C Ordinary shares of 0.2p each
1
1
300 D Ordinary shares of 0.2p each
1
1
200
200
12
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:
2021
2020
£
£
385,000
462,024
13
Related party transaction
At 31 August 2020 Nordman Property Ltd, a connected company, owed Quarch Technology Limited £486,818. During the year Nordman Property Ltd repaid £100,000 and Quarch Technology Limited charged interest totalling £10,810 on this loan. At 31 August 2021, Nordman Property Ltd owed Quarch Technology Limited £397,628. 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 £77,000 (2020 - £77,000).
During the year the company loaned one of the directors £795,645. Interest of £8,834 was charged and the director repaid £100,000. At 31 August 2021 the director owed the company £704,479. This loan carries interest at 2% and has no fixed terms of repayment.
During the year the company paid dividends totalling £800,000 (2020 - £500,000) to the directors.
2021-08-31
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false
09 February 2022
CCH Software
CCH Accounts Production 2021.300
No description of principal activity
Mr M Dearman
Mr A Norrie
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