Company registration number SC438223 (Scotland)
XELECT LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
PAGES FOR FILING WITH REGISTRAR
XELECT LIMITED
CONTENTS
Page
Directors' report
1 - 2
Balance sheet
3 - 4
Statement of changes in equity
5
Notes to the financial statements
6 - 12
XELECT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 1 -
The directors present their annual report and financial statements for the year ended 30 June 2022.
Principal activities
The principal activity of the company is that of the provision of genetic services for aquaculture, conservation and environmental monitoring.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Professor Ian Johnston
Dr Tom Ashton
A Goor
Mark Birri
(Resigned 16 November 2022)
Amy Gibson
(Appointed 16 November 2022)
Statement from directors
On 2 March 2021 the Company and its shareholders entered into an agreement with Genus PLC (“Genus”) whereby Genus acquired 39% of the share capital of the Company. As part of this transaction the Company and shareholders also entered into a call option agreement with Genus giving them the right, but not the obligation, to acquire the remaining 61% of the shares in 2023. To facilitate this, the Company changed its accounting reference period from 31 January to 30 June and extended its reporting period for 2020/21 to 17 months. The results for the current financial year are for the 12 month period to June 2022.
The Directors are pleased to report a further period of significant progress with turnover for the 12 month period of £1,571,079 (17 months 2020/21: £1,663,204) and pre-tax profit of £170,127 (17 months 2020/21: £157,102). Net funds at 30 June 2022 were £167,722 (30 June 2021: £196,170).
During the financial period the Company added a further 2 PhD qualified staff to the team, doubled its in-house sequencing capacity and consolidated all operations within expanded premises.
Statement of directors' responsibilities
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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
XELECT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 2 -
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.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Professor Ian Johnston
Director
24 March 2023
XELECT LIMITED
BALANCE SHEET
AS AT
30 JUNE 2022
30 June 2022
- 3 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
167,539
130,216
Tangible assets
5
201,214
132,898
Current assets
Stocks
87,978
99,435
Debtors
6
443,356
339,310
Cash at bank and in hand
207,722
246,170
739,056
684,915
Creditors: amounts falling due within one year
7
(312,489)
(309,360)
Net current assets
426,567
375,555
Total assets less current liabilities
795,320
638,669
Creditors: amounts falling due after more than one year
8
(30,000)
(41,775)
Provisions for liabilities
(37,893)
(24,335)
Net assets
727,427
572,559
Capital and reserves
Called up share capital
10
138
138
Share premium account
358,620
358,620
Profit and loss reserves
368,669
213,801
Total equity
727,427
572,559
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 30 June 2022 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.
XELECT LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2022
30 June 2022
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 24 March 2023 and are signed on its behalf by:
Professor Ian Johnston
Director
Company Registration No. SC438223
XELECT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
- 5 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2020
118
338,791
89,159
428,068
Period ended 30 June 2021:
Profit and total comprehensive income for the period
-
-
124,642
124,642
Issue of share capital
20
19,829
-
19,849
Balance at 30 June 2021
138
358,620
213,801
572,559
Year ended 30 June 2022:
Profit and total comprehensive income for the period
-
-
154,868
154,868
Balance at 30 June 2022
138
358,620
368,669
727,427
XELECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
- 6 -
1
Accounting policies
Company information
Xelect Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
Horizon House, Abbey Walk, St Andrews, Fife, Scotland, KY16 9LB.
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
pound.
The principal accounting policies adopted are set out below.
1.2
Reporting period
The financial period was extended to 17 months in the prior period as part of an agreement with the current and a new shareholder in the year. The comparative amounts in the financial statements are therefore not entirely comparable.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
D
evelopment expenditure is
written off in the same way unless the directors are satisfied as to the certainty of
technical, commercial and financial
viability of individual projects. In this situation, the expenditure is deferred as an intangible asset and amortised over a period during which the company is expected to benefit.
1.5
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 comprise costs on specific internal projects which are incurred in the development phase once the directors are satisfied of the certainty of technical, commercial and financial viability. Such assets are defined as having finite useful lives and amortised accordingly. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
XELECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 7 -
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 bas
is
:
Patents
20% straight line
Development costs
20% reducing balance
1.6
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
20% reducing balance
Fixtures, fittings & equipment
20% reducing balance
Computer equipment
25% 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
.
1.7
Impairment of fixed assets
At each reporting
period
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).
The policy relating to the impairment of intangible assets is stated at Note 1.
5
.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.9
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
.
1.10
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 interes
t.
XELECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 8 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
Basic financial liabilities
Basic financial liabilities, including
creditors and loans
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.
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.
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.
1.11
Taxation
The tax expense represents the sum of the tax currently
recoverable
and deferred tax.
Current tax
The tax
recoverable
is based on
research and development tax credits available in the
year. Taxable
loss
differs from net
profit/(loss)
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 recoverable amount
for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
A claim in respect of research and development expenditure has been made for the year
.
1.12
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.
XELECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 9 -
1.13
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
.
The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.14
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.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
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.
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.
XELECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 10 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
17
14
4
Intangible fixed assets
Other
£
Cost
At 1 July 2021
246,769
Additions
75,899
At 30 June 2022
322,668
Amortisation and impairment
At 1 July 2021
116,553
Amortisation charged for the year
38,576
At 30 June 2022
155,129
Carrying amount
At 30 June 2022
167,539
At 30 June 2021
130,216
XELECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 11 -
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2021
287,196
Additions
118,173
At 30 June 2022
405,369
Depreciation and impairment
At 1 July 2021
154,298
Depreciation charged in the year
49,857
At 30 June 2022
204,155
Carrying amount
At 30 June 2022
201,214
At 30 June 2021
132,898
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
394,685
210,561
Corporation tax recoverable
272
Other debtors
48,522
126,899
443,207
337,732
Deferred tax asset
149
1,578
443,356
339,310
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
10,000
10,000
Trade creditors
139,590
41,301
Taxation and social security
28,118
57,173
Other creditors
134,781
200,886
312,489
309,360
XELECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 12 -
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
30,000
40,000
Other creditors
1,775
30,000
41,775
9
Share-based payment transactions
Number of share options
Weighted average exercise price
2022
2021
2022
2021
Number
Number
£
£
Outstanding at start of period
16,180
1.38
Granted
9,670
0.73
Forfeited
(6,912)
1.38
Exercised
(18,938)
1.05
Outstanding at end of period
Exercisable at end of period
10
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
137,621 ordinary shares of 0.1p each
138
138
138
138
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
Within one year
64,608
46,560
Between two and five years
258,432
47,764
In over five years
283,036
606,076
94,324
2022-06-30
2021-07-01
false
24 March 2023
CCH Software
CCH Accounts Production 2022.300
Professor Ian Johnston
Dr Tom Ashton
A Goor
Mark Birri
Gibson
David Cooper
SC438223
2021-07-01
2022-06-30
SC438223
bus:Director1
2021-07-01
2022-06-30
SC438223
bus:Director2
2021-07-01
2022-06-30
SC438223
bus:Director7
2021-07-01
2022-06-30
SC438223
bus:Director8
2021-07-01
2022-06-30
SC438223
bus:Director9
2021-07-01
2022-06-30
SC438223
bus:Director3
2021-07-01
2022-06-30
SC438223
bus:Director4
2021-07-01
2022-06-30
SC438223
bus:Director5
2021-07-01
2022-06-30
SC438223
bus:CompanySecretary1
2021-07-01
2022-06-30
SC438223
2022-06-30
SC438223
2021-06-30
SC438223
core:IntangibleAssetsOtherThanGoodwill
2022-06-30
SC438223
core:IntangibleAssetsOtherThanGoodwill
2021-06-30
SC438223
core:OtherPropertyPlantEquipment
2022-06-30
SC438223
core:OtherPropertyPlantEquipment
2021-06-30
SC438223
core:CurrentFinancialInstruments
core:WithinOneYear
2022-06-30
SC438223
core:CurrentFinancialInstruments
core:WithinOneYear
2021-06-30
SC438223
core:CurrentFinancialInstruments
2022-06-30
SC438223
core:CurrentFinancialInstruments
2021-06-30
SC438223
core:Non-currentFinancialInstruments
2022-06-30
SC438223
core:Non-currentFinancialInstruments
2021-06-30
SC438223
core:ShareCapital
2022-06-30
SC438223
core:ShareCapital
2021-06-30
SC438223
core:SharePremium
2022-06-30
SC438223
core:SharePremium
2021-06-30
SC438223
core:RetainedEarningsAccumulatedLosses
2022-06-30
SC438223
core:RetainedEarningsAccumulatedLosses
2021-06-30
SC438223
core:ShareCapital
2020-01-31
SC438223
core:SharePremium
2020-01-31
SC438223
core:RetainedEarningsAccumulatedLosses
2020-01-31
SC438223
2020-01-31
SC438223
core:ShareCapitalOrdinaryShares
2022-06-30
SC438223
core:ShareCapitalOrdinaryShares
2021-06-30
SC438223
core:RetainedEarningsAccumulatedLosses
2020-02-01
2021-06-30
SC438223
2020-02-01
2021-06-30
SC438223
core:RetainedEarningsAccumulatedLosses
2021-07-01
2022-06-30
SC438223
core:ShareCapital
2020-02-01
2021-06-30
SC438223
core:SharePremium
2020-02-01
2021-06-30
SC438223
core:IntangibleAssetsOtherThanGoodwill
2021-07-01
2022-06-30
SC438223
core:PlantMachinery
2021-07-01
2022-06-30
SC438223
core:FurnitureFittings
2021-07-01
2022-06-30
SC438223
core:ComputerEquipment
2021-07-01
2022-06-30
SC438223
core:IntangibleAssetsOtherThanGoodwill
2021-06-30
SC438223
core:OtherPropertyPlantEquipment
2021-06-30
SC438223
core:OtherPropertyPlantEquipment
2021-07-01
2022-06-30
SC438223
core:WithinOneYear
2022-06-30
SC438223
core:WithinOneYear
2021-06-30
SC438223
2021-06-30
SC438223
bus:OrdinaryShareClass1
2022-06-30
SC438223
bus:OrdinaryShareClass1
2021-07-01
2022-06-30
SC438223
core:BetweenTwoFiveYears
2022-06-30
SC438223
core:BetweenTwoFiveYears
2021-06-30
SC438223
core:MoreThanFiveYears
2022-06-30
SC438223
core:MoreThanFiveYears
2021-06-30
SC438223
bus:PrivateLimitedCompanyLtd
2021-07-01
2022-06-30
SC438223
bus:SmallCompaniesRegimeForAccounts
2021-07-01
2022-06-30
SC438223
bus:FRS102
2021-07-01
2022-06-30
SC438223
bus:AuditExemptWithAccountantsReport
2021-07-01
2022-06-30
SC438223
bus:FullAccounts
2021-07-01
2022-06-30
xbrli:pure
xbrli:shares
iso4217:GBP